Warsaw, 2010
Annual Report
2009
Marek Belka
President of the National Bank of Poland
2009
Ladies and Gentlemen,
We are presenting you with the Annual Report of the National Bank of Poland for 2009, providing
data on the execution of NBP objectives and tasks in the last year. I hope the Report will prove a valuable
source of information about the National Bank of Poland itself and its activities over the past year, while the
figures and comments contained in it will serve the performance of in-depth analyses of the effectiveness of
NBP operations in 2009.
The activities of NBP in 2009 were determined by the macroeconomic conditions. In the aftermath of
the global financial crisis, the world economy suffered the deepest recession since the Great Depression of
the late 1920s and early 1930s. This has led to a strong decline in the global demand, collapse of
international trading and significant price fluctuations on financial markets worldwide. Even with the
implementation of anti-crisis measures by a number of countries, the signs of revival in the world economy
were very weak.
As set forth in the Act on the National Bank of Poland, the key objective of NBP operations is to
maintain price stability while supporting the economic policy envisaged by the Polish government.
In 2009, the annual consumer price index declined by 0.7 pp as compared with 2008 and stood at
3.5%. Inflation was to a large extent affected by factors outside the direct influence of domestic monetary
policy, i.e. mainly by rises in administered prices and excise tax rates. A contributing factor was also the
significant zloty depreciation observed in the period of July 2008 – February 2009, stemming from an increase
in risk aversion on financial markets worldwide and an outflow of foreign capital from emerging markets.
In the face of persisting uncertainty over the outlooks of global economy, the NBP activities in 2009
focused on limiting the impact of the worldwide financial crisis on the Polish economic environment. To this
end, the Monetary Policy Council continued easing the monetary policy, which it initiated at the end of 2008.
In 2009, the National Bank of Poland reduced its interest rates on four occasions – in January, February,
March and June – by a total of 150 basis points, to their lowest recorded level since the economic
transformation. The NBP reference rate decreased from 6% in November 2008 to 3.5% in June 2009.
Notably, the above cuts were not without impact on the decrease in the majority of market interest rates.
With the goal of enhancing the stability of the domestic financial system, the NBP continued the
activities aimed towards providing banks with liquidity, first implemented at the end of 2008 under the
Confidence Package. Steps were taken to ease the restrictions on credit accessibility for business entities,
refinancing operations for banks were extended, and additional funds originating from an early redemption
of NBP bonds and a reduction in the minimum reserve requirement rate were put at banks’ disposal.
With respect to Poland’s prospects of joining the monetary union, the NBP conducted analyses on the
real and nominal convergence of the Polish economy with those of the euro area, monitored the
developments in the euro area countries and the implications for Poland stemming from them, as well as
continued research on the level of equilibrium exchange rate.
In 2009, in collaboration with the Polish government, the NBP worked towards developing
organisational structures related to the preparations to adopt the euro in Poland. The NBP Management
Board plenipotentiary for the introduction of euro as the official currency was appointed a Co-Chairman
of the National Coordination Committee for Euro Changeover and of the Coordinating Council.
The representatives of the National Bank of Poland became members of seven out of eight work teams.
The profit posted by the NBP in 2009 amounted to PLN 4,165,600 thousand, as compared with 2008
when the earnings as of the end of the year stood at zero. The increase in the financial result of the National
Bank of Poland recorded in 2009 is owed primarily to the effective foreign exchange reserves management
executed in the face of zloty depreciation.
Last year saw the completion of reorganisation of NBP regional branches and initiation of work on
reorganising the Head Office of the National Bank of Poland. The key purpose of these changes is to improve
the effectiveness of NBP operations, enhance the management efficiency and reduce the operating costs.
The person heading the National Bank of Poland over the past year in the capacity of the President of
the Management Board was Mr Sławomir Stanisław Skrzypek, tragically killed in the Smolensk air crash in
April 2010. The year 2009 was particularly difficult, as the world struggled with a significant downturn in
economies. In those challenging conditions, the National Bank of Poland actively counteracted the mounting
decline. It initiated activities aimed at limiting the negative effects of global economic crisis, which protected
our financial system from destabilisation, while the executed responsible monetary policy contributed to
maintaining a positive economic growth, which none of the EU states managed to achieve.
Marek Belka
President of the National Bank of Poland
2009
4
Contents
N a t i o n a l B a n k o f P o l a n d
CONTENTS
MONETARY POLICY COUNCIL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
MANAGEMENT BOARD OF THE NATIONAL BANK OF POLAND . . . . . . . . . 11
ORGANISATION CHART OF THE NATIONAL BANK OF POLAND . . . . . . . . 12
SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1. GOVERNING BODIES OF THE NBP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1.1. President of the National Bank of Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
1.2. Monetary Policy Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
1.3. Management Board of the National Bank of Poland . . . . . . . . . . . . . . . . . . . . . . . . . . 24
1.4. Implementation of the National Bank of Poland Plan of Activity 2007–2009. . . . . . . . 27
2. MONETARY POLICY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.1. Monetary policy strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.2. Macroeconomic conditions of NBP monetary policy in 2009. . . . . . . . . . . . . . . . . . . . . 32
2.3. Monetary policy in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
2.4. Monetary policy instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
2.4.1. Liquidity in the banking sector in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.4.2. Monetary policy tools in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.4.2.1. Interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.4.2.2. Open market operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
2.4.2.3. Reserve requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
2.4.2.4. Standing facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
2.4.2.5. Foreign exchange swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
2.4.2.6. Other operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
2.4.2.7. Foreign exchange interventions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3. FINANCIAL SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
3.1. NBP and the Financial Stability Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
3.2. Analyses and research for the needs of the financial system . . . . . . . . . . . . . . . . . . . . 51
3.3. Preventing disturbances in the interbank market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
3.3.1. Pact for the Growth of Lending in Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
3.3.2. NBP response to the postulates from the banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
3.3.3. Discount credit facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.4. International co-operation for financial stability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.4.1. Poland's membership in the European Union. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
4. THE ISSUE OF CURRENCY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
4.1. Currency in circulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
4.2. Issue of collector coins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
4.2.1. Prizes and awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
4.2.2. New principles of sale of coins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
4.3. Withdrawal of unfit notes and coins. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
2009
Annual Report 2009
Contents
4.4. Counterfeit Polish currency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
4.5. Supply of notes and coins to banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
4.6. Exchange of notes and coins which ceased to be legal tender . . . . . . . . . . . . . . . . . . . 59
4.7. Commission for the Euro Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
5. FOREIGN EXCHANGE RESERVES MANAGEMENT. . . . . . . . . . . . . . . . . . . 61
5.1. General principles for managing the foreign exchange reserves . . . . . . . . . . . . . . . . . 62
5.2. Financial risk management in the foreign exchange
reserves management process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
5.3. Level of the official reserve assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
5.4. Foreign exchange currency reserves management strategy . . . . . . . . . . . . . . . . . . . . . 65
5.5. Market environment in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
5.5.1. The US, euro area, UK and Australian government securities market . . . . . . . . . . . . . . . . . 67
5.5.2. Norwegian interbank deposits market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
5.6. Return on foreign exchange currency reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
5.7. Investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
5.8. Return enhancement on foreign exchange currency reserves. . . . . . . . . . . . . . . . . . . . 72
6. FOREIGN EXCHANGE ACTIVITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
6.1. Register of bureaux de change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
6.2. Foreign exchange related decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
6.3. Foreign exchange control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
7. THE PAYMENT SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
7.1. Oversight of payment systems, authorisation and clearing systems and securities
settlement systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
7.1.1. Oversight of payment systems, authorisation and clearing systems . . . . . . . . . . . . . . . . . . 80
7.1.2. Oversight of securities settlement systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
7.2. Policy and development of the payment system. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
7.2.1. Legal framework of the payment system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
7.2.2. Development of the functionality of domestic large value payment
systems and adjusting them to payment systems operated within the EU. . . . . . . . . . . . . 81
7.2.3. Promotion of non-cash transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
7.2.4. Development of SEPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
7.2.5. Payment System Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
7.3. Implementation of operational tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
7.3.1. Integration with payment systems operated in the European Union . . . . . . . . . . . . . . . . . 83
7.3.2. Operation of banks’ current accounts in the SORBNET system . . . . . . . . . . . . . . . . . . . . . 84
7.3.3. Maintenance of banks’ current accounts in the SORBNET-EURO system . . . . . . . . . . . . . . 86
7.3.4. Maintenance of banks’ current account in the TARGET2-NBP system . . . . . . . . . . . . . . . . 88
5
2009
6
Contents
N a t i o n a l B a n k o f P o l a n d
8. EDUCATION AND INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
8.1. Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
8.2. Publishing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
8.3. Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
8.3.1. Liaising with the media and market analysts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
8.3.2. NBP website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
8.4. Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
8.4.1. The Program of Economic Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
8.4.2. Economic Education Portal – NBPortal.pl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
8.4.3. Dissemination of knowledge on the EMU and the euro . . . . . . . . . . . . . . . . . . . . . . . . . . 96
8.4.4. The National Bank of Poland Foundation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
8.4.5. Towards the NBP Centre for Promotion and Economic Education . . . . . . . . . . . . . . . . . . . 97
8.5. NBP Central Library . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
9. SERVICES TO THE CENTRAL GOVERNMENT. . . . . . . . . . . . . . . . . . . . . . . 99
9.1. Bank accounts operated by the NBP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
9.1.1. Operating bank accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
9.1.2. Categories of accounts operated by the NBP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
9.2. Handling international receivables and liabilities of central government . . . . . . . . . 101
9.3. Trade in securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
9.3.1. Treasury securities auctions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
9.3.2. Treasury Securities Dealer system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
9.4. Public debt management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
10. RESEARCH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
10.1. Research related to participation in the Exchange Rate Mechanism II
(ERM II) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
10.2. Studies of monetary policy, inflation processes and expectations . . . . . . . . . . . . . . 106
10.3. Enterprise and household surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
10.4. Other macroeconomic research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
10.5. Forecast and research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
10.6. Research on full membership of the Republic of Poland
in the third stage of the Economic and Monetary Union . . . . . . . . . . . . . . . . . . . . . 111
10.7. Poland in the Face of the World Economic Crisis report . . . . . . . . . . . . . . . . . . . . . . 112
10.8. Academic conferences and seminars hosted by the NBP. . . . . . . . . . . . . . . . . . . . . . 112
11. STATISTICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
11.1. Standard tasks with respect to statistics, performed by the NBP . . . . . . . . . . . . . . . 116
11.2. Statistical tasks derived from the NBP participation in the ESCB and in other
international institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
11.2.1. Monetary and financial statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
11.2.2. Financial accounts statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
2009
Annual Report 2009
Contents
11.2.3. General government sector statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
11.2.4. Real sector statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
11.2.5. Statistics of the balance of payments and the international investment position . . . . . 119
11.2.6. Supervisory and prudential statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
12. LEGISLATIVE FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
11.1. Legislation of NBP governing bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
12.2. The NBP collaboration with the state authorities on draft normative
and non-normative acts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
12.3. Draft legislation pertaining to the operation of the banking system . . . . . . . . . . 123
12.4. Consulting Community laws and draft national legislation
of the EU Member States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
12.5. Work on draft agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
12.6. Work related to the adoption of the euro by Poland . . . . . . . . . . . . . . . . . . . . . . 126
13. INTERNATIONAL ACTIVITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
13.1. Duties from Poland’s membership in the European Union . . . . . . . . . . . . . . . . . . 130
13.1.1. Co-operation within the European System of Central Banks . . . . . . . . . . . . . . . . . . . 130
13.1.2. Collaboration with other Community bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
13.1.3. Preparations for the Polish Presidency in the Council of the European Union . . . . . . . 131
13.2. Collaboration with international economic and financial institutions . . . . . . . . . 131
13.2.1. Organisation for Economic Co-operation and Development (OECD). . . . . . . . . . . . . . 131
13.2.2. The World Bank Group and the International Monetary Fund. . . . . . . . . . . . . . . . . . . 132
13.2.3. The European Bank for Reconstruction and Development . . . . . . . . . . . . . . . . . . . . . 133
13.2.4. Co-operation with international financial institutions . . . . . . . . . . . . . . . . . . . . . . . . 133
13.2.5. The Bank for International Settlements (BIS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
13.2.6. The International Bank for Economic Co-operation (IBEC) . . . . . . . . . . . . . . . . . . . . . 133
13.3. Technical and training assistance for other central banks . . . . . . . . . . . . . . . . . . . 133
14. INTERNAL DEVELOPMENT OF THE NBP . . . . . . . . . . . . . . . . . . . . . . . 135
14.1. Human resources management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
14.1.1. NBP employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
14.1.2. Developing staff qualifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
14.2. Organisational changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
14.3. Strategic management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
14.4. Operational risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
14.5. IT support for the banking system and the NBP . . . . . . . . . . . . . . . . . . . . . . . . . . 139
14.6. Safety and security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
14.7. Internal audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
14.8. Other activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
7
2009
8
Contents
N a t i o n a l B a n k o f P o l a n d
15. INDEPENDENT AUDITOR’S OPINION AND CONDENSED FINANCIAL
STATEMENTS OF THE NATIONAL BANK OF POLAND AS AT
31 DECEMBER 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
15.1. Independent auditor’s opinion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
15.2. Legal principles for maintaining accountancy records at the NBP . . . . . . . . . . . . . 147
15.3. Basic accounting principles at the NBP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
15.4. Information about significant events after the balance sheet date,
not recognised in the NBP financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . 150
15.5. Certified auditor and its selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
15.6. Other issues influencing the correct understanding of the NBP’s material
and financial situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
15.6.1. New agreements between the Republic of Poland
and the International Monetary Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
15.6.2. NBP share in the subscribed capital of the ECB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
15.6.3. The National Bank of Poland Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
15.7. Amendments to the accounting principles in the financial year 2009. . . . . . . . . . 152
15.8. Data comparability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
15.9. Changes in balance-sheet items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
15.9.1 Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
15.9.1.1. Gold and gold receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
15.9.1.2. Claims on non-residents denominated in foreign currency . . . . . . . . . . . . . . . . . . . 159
15.9.1.3. Claims on residents denominated in foreign currency. . . . . . . . . . . . . . . . . . . . . . . 160
15.9.1.4. Claims on other domestic monetary financial institutions related
to monetary policy operations denominated in domestic currency . . . . . . . . . . . . . 160
15.9.1.5. Other claims on other domestic monetary financial institutions
denominated in domestic currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
15.9.1.6. Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
15.9.2. Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
15.9.2.1. Banknotes and coins in circulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
15.9.2.2. Liabilities to other domestic monetary financial institutions related
to monetary policy operations denominated in domestic currency . . . . . . . . . . . . . 166
15.9.2.3. Other liabilities to other domestic monetary financial institutions
denominated in domestic currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
15.9.2.4. Liabilities to other residents denominated in domestic currency . . . . . . . . . . . . . . . 167
15.9.2.5. Liabilities to non-residents denominated in domestic currency . . . . . . . . . . . . . . . . 168
15.9.2.6. Liabilities to residents denominated in foreign currency . . . . . . . . . . . . . . . . . . . . . 168
15.9.2.7. Liabilities to non-residents denominated in foreign currency . . . . . . . . . . . . . . . . . . 169
15.9.2.8. Liabilities to the IMF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
15.9.2.9. Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
15.9.2.10. Provisions for future liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
15.9.2.11. Revaluation accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
15.9.2.12. Capital and reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
2009
Annual Report 2009
Contents
15.9.2.13. Financial result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
15.9.3. Off-balance sheet items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
15.10. Changes in the NBP profit and loss account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
APPENDIX 1 GDP and aggregate demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
APPENDIX 2 Prices of consumer goods and services . . . . . . . . . . . . . . . . . . . . . . . . . . 182
APPENDIX 3 Balance of payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
APPENDIX 4 Money and credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
APPENDIX 5 Minutes of Monetary Policy Council decision-making meetings
held in 2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
APPENDIX 6 Selected information about the banking sector . . . . . . . . . . . . . . . . . . . 228
APPENDIX 7 List of open-to-public academic seminars and selected
publications of the NBP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
APPENDIX 8 Voting records of Monetary Policy Council members
on motions and resolutions in 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
STATISTICAL ANNEX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
METHODOLOGICAL NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266
LIST OF THE MOST IMPORTANT ABBREVIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
9
2009
10 N a t i o n a l B a n k o f P o l a n d
Monetary Policy Council
Chairperson
Sławomir S. Skrzypek
Members:
Jan Czekaj
Dariusz Filar
Stanisław Nieckarz
Marian Noga
Stanisław Owsiak
Mirosław Pietrewicz
Andrzej Sławiński
Halina Wasilewska-Trenkner
Andrzej Wojtyna
2009
Annual Report 2009 11
Management Board
of the National Bank of Poland
Chairman
Sławomir S. Skrzypek
appointed at the request of the President of the Republic of Poland
by the Sejm on 10 January 2007
Members:
Piotr Wiesiołek
First Deputy President of the NBP
(since 6 March 2008)
Witold Koziński
Vice President of the NBP
(since 24 October 2008)
Zbigniew Hockuba (since 2 November 2007)
Jakub Skiba (since 2 November 2007)
Zdzisław Sokal (since 13 March 2007)
Jerzy Stopyra (since 25 March 2004)
Małgorzata Zaleska (since 3 August 2009)
Dismissed
Paweł Samecki* – in 2009
* After resigning from the post on 30 June 2009, he was dismissed by the President of the Republic of Poland on 7 July 2009.
2009
12 N a t i o n a l B a n k o f P o l a n d
Organisation chart of the National Bank of Poland
Valid since 31 December 2009
Organisational
units
managed by
the NBP
President
Organisational units
assigned to be managed
by the NBP
Deputy President
Economic
Institute
Chairperson – President
of the NBP
Monetary Policy Council
Chairperson – President
of the NBP
President NBP Management Board
of the NBP
Organisational
units assigned to be
managed by the NBP
First Deputy President
16
Regional
Branches
Payment
Systems
Department
Cash
and Issue
Department
Foreign
Exchange
Department
First Deputy
President
Piotr Wiesiołek
Deputy President
Witold Koziński
Financial
System
Department
Department
of Statistics
Bureau for the
Integration with
the Euro Area
Domestic
Operations
Department
Education
and Publishing
Department
Administration
Department
Security
Department
Financial
Risk
Management
Department
Strategic
Management
Department
Legal
Department
Public Relations
and Marketing
Department
Internal
Audit
Department
Accouting
and
Operations
Department
Office
of the President
Personnel
Department
Authorised
Member of NBP
Management Board
Jerzy Stopyra
Authorised
Member of NBP
Management Board
Małgorzata Zaleska
Authorised
Member of NBP
Management Board
Jakub Skiba
Authorised
Member of NBP
Management Board
Zbigniew Hockuba
Authorised
Member of NBP
Management Board
Zdzisław Sokal
Information
Technology and
Telecommunications
Department
Support
Services Office
in Warsaw
Operational
Risk Unit
NBP HEAD
OFFICE
NBP HEAD
OFFICE
International
Department
Day-to-day oversight exercised pursuant to an authorisation granted by the NBP President to Members of the NBP Management Board, in accordance with § 12 of
the Organisational By-laws of the National Bank of Poland.
Day-to-day oversight exercised on the basis of the NBP reporting structure, according to the areas of work of organisational units assigned by the NBP President
to be managed by the NBP Deputy Presidents.
Annual Report 2009
SUMMARY
2009
14
Summary
N a t i o n a l B a n k o f P o l a n d
1. Pursuant to Article 227 para. 1 of the Constitution of the Republic of Poland, ”The central bank
of the State shall be the National Bank of Poland. It shall have the exclusive right to issue money
as well as to formulate and implement monetary policy. The National Bank of Poland shall be
responsible for the value of Polish currency”. The basic responsibilities of the NBP are stipulated
in the Act on the National Bank of Poland,1 in the Banking Act,2 in the Treaty establishing the
European Community,3 and in the Statute of the ESCB and of the ECB. In 2009, the NBP
conducted its activities pursuant to the Monetary Policy Strategy beyond 2003, the Monetary
Policy Guidelines for 2009, the National Bank of Poland Plan of Activity 2007–2009 and the
Strategy for the Management of the National Bank of Poland in the Years 2009–2012.
2. This Report describes the performance of the statutory responsibilities of the NBP in 2009 with
regard to the following areas: monetary policy, pursuit of the financial system stability, issue of
currency, foreign exchange reserve management, foreign exchange activities, the payment
system, education and information, services to the central government, research, statistics,
legislative framework, international co-operation and internal development. The Report also
presents abbreviated Financial Statement of the NBP as at 31 December 2009 and the opinion
of an independent certified auditor.
3. Pursuant to Article 6 of the Act on the National Bank of Poland, the directing bodies of the NBP
comprise the President of the National Bank of Poland, the Monetary Policy Council and the
Management Board of the National Bank of Poland. In 2009, the organisational structure of the
NBP consisted of the Head Office and 17 organisational units.
4. Representing the central bank and Poland on the international forum, in 2009, the NBP
representatives participated primarily in the work of the following bodies: the ECB General
Council, ESCB committees and working groups, the ECOFIN Council (unofficial meetings),
committees and working groups of the EU Council and European Commission. These focused
on a new architecture of financial supervision in the EU, monitoring and analysing the fiscal
situation in EU Member States as well as issuing opinions on draft community laws. Moreover,
the NBP paved the way for the prospective PolandΣs Presidency in the EU Council.
5. In 2009, the monetary policy was conducted against the backdrop of recession prevailing in the
world economy and persisting turmoil in financial markets. The recession that began in 2008
escalated dramatically in most countries at the beginning of 2009. As a consequence GDP
rapidly decreased, the situation in the labour market substantially deteriorated and sentiments
of economic agents sank into a low point. In parallel, increased uncertainty and high risk
aversion persisted in international financial markets. Asset prices declined further and
disruptions occurred in financial markets operations. Starting from 2009 Q2, the recession
trends in the world economy decelerated and global GDP recovered in subsequent quarters.
However, the scale of improvement in the economic situation of individual countries and
regions was varied. In spite of gradual upturn in the economy, the major developed economies
posted a decrease in GDP throughout 2009.
Although the Polish economy proved to be relatively resilient to the world crisis – which was
primarily due to smaller share of export in the GDP than observed in other economies of the
region, floating exchange rate and lower exposure to external loans – the economic activity
declined substantially in 2009. As a result of recession observed in major trading partners,
external demand for Polish goods and services decreased. At the same time, however,
competitiveness of Polish products strengthened. This was due to increased risk aversion in the
global financial markets in 2008 Q4 and in early 2009, exodus of foreign capital from emerging
markets and significant depreciation of the Polish exchange rate. As a result, in 2009, the share
of net export in the GDP growth was positive. This stimulated the economic growth in Poland.
1 Journal of Laws No 1/2005, item 2, as amended.
2 Journal of Laws No 72/2002, item 665, as amended.
3 OJ of the EU C 115 of 9 May 2008.
2009
Annual Report 2009
Summary
The economic slowdown coincided with significant deterioration in the labour market.
Employment ebbed down, unemployment edged up, the public finance sector deteriorated and
lending lost its momentum.
In 2009, the annual Consumer Price Index (CPI) dropped by 0.7 pp as compared to 2008, to
amount to 3.5%. Thus it remained at the upper limit for deviations from the NBP inflation
target, specified as 2.5%. CPI stood at elevated levels in 2009, resulting to a material extent
from factors beyond direct impact of domestic monetary policy; as risk aversion heightened in
global financial markets, foreign capital exited emerging markets, administered prices and
excise tax rates, and the Polish zloty substantially depreciated between July 2008 and February
2009. In March 2009, exchange rates of the zloty stabilised to follow a steady depreciation later
on, as the outlooks for the growth of world economy improved and global risk aversion
decreased. Strengthening of the zloty exchange rates had a dampening impact on the increase
both in oil prices and inflation in the second half of 2009.
In the first half of 2009 – taking into account the incoming macroeconomic data as well as the
anticipated strong slowdown in global and Polish economic activity, conducive to reducing
inflationary pressure in the medium term – the Council continued to ease the monetary policy,
which it had commenced in 2008. During this period, the NBP cut its interest rates on four
occasions: in January, February, March and June, by a total of 150 bp (the NBP reference rate
was reduced to 3.50%). Additionally, in May 2009, the Council reduced the rate of minimum
reserve by 0.5 pp (from 3.5% to 3.0%).
In the second half of 2009, the economic situation gradually improved, whereas substantial
uncertainty persisted as regards the durability of the economic upturn observed abroad. In that
context, the Council maintained interest rates unchanged. Until September, the Council
assessed the inflation be more likely to run below than above the target in the medium term.
In October, the Council changed the risk assessment for the performance of inflation targeting
in the medium term. Accordingly inflation was assumed comparably likely to run above or
below the target in the medium term. This implied the cycle of easing the monetary policy come
to an end. The Council maintained such an assessment until the end of 2009. As a result of
these decisions, the NBP reference rate reached 3.50% towards the end of December 2009.
6. In pursuance of its monetary policy, the NBP took a recourse to a set of instruments adopted
by the Monetary Policy Council in the Monetary Policy Guidelines for 2009, with a short-term
interest rate remaining its basic instrument. The NBP reference rate determined the minimum
yield on main open market operations, influencing, at the same time, the level of short-term
deposit rates in the market of unsecured interbank deposits. In 2009, similarly to 2008, the
main open market operations involved issuing money market bills with 7-day maturity. By using
those bills, the NBP absorbed liquidity surplus from the banking sector. The NBP deposit and
lombard rates determined the profitability of standing facilities as well as the corridor for
deviations of the overnight market rate. Thanks to the lombard loan and the deposit facility,
banks could supplement liquidity deficits and deposit their surplus liquidity with the central
bank. Moreover, by implementing the so-called Confidence Package, the NBP provided the
banking sector with liquidity in zloty, by carrying out further fine-tuning repo operations,
offered with 3-month and 6-month maturity, as well as with liquidity in foreign currencies
(CHF, EUR and USD), by using foreign exchange swaps.
7. The level of short-term liquidity surplus in the banking sector, measured as the average
annualised balance of operations carried out by the NBP (the total of money market bills issued
by the NBP, repo transactions, foreign exchange swaps as well as standing facilities) amounted
to PLN 23,940 million and was higher by PLN 12,976 million over the average of 2008. Excess
liquidity rose mainly due to the early redemption of NBP bonds and the surplus of foreign
currency purchases by the NBP over foreign currency sales (including those due to the use of
EU funds denominated in zloty). Moreover, the decrease in the currency in circulation as well
as lower level of banks’ minimum reserve were also conductive to the increase in liquidity. The
15
2009
16
Summary
N a t i o n a l B a n k o f P o l a n d
value of the NBP money market bills averaged PLN 31,873 million in 2009. The repo operations
carried out under the Confidence Package averaged PLN 11,456 million, whilst foreign
exchange swaps stood at PLN 1,076 million. The average level of standing facilities amounted
to PLN 2,447 million.
8. Work in the core business area of monetary policy pursued by the NBP was chiefly focused on
strengthening NBP’s credibility as an institution responsible for the value of the Polish currency.
The NBP at all times seeks to enhance the transparency of its activities and dedicates its efforts
to ensure the best possible communication with financial markets, enterprises and the general
public. In 2009, the NBP organised approx. 90 meetings with journalists. These were press
conferences (including regular press conferences following the meetings of the Monetary Policy
Council, as well as conferences dedicated to inflation projections and the GDP), presentations
of collector coins introduced into circulations as well as meetings held on other occasions
related to the BankΣs activity. About. 340 interviews and meetings were held with the members
of the Monetary Policy Council and the Management Board of the NBP. Over 120 press releases
were published.
9. Pursuant to Article 3 section 2 para. 6 of the Act on the National Bank of Poland, the
responsibilities of the NBP shall include ”laying down the necessary conditions for the
development of the banking system”. The NBP performs this responsibility on an ongoing basis
by taking steps to maintain a stable and low level of inflation. In 2009, the NBP primarily sought
to guarantee the liquidity in the banking sector, refinance banks’ activity (see para. 10 of the
Summary) as well as to maintain stability of the payment system (see para. 14 of the Summary).
10. In 2009, striving to maintain the stability of the financial system, the NBP focused on reducing
the impact of the world financial crisis on the Polish economy. In discharge of this remit the NBP
endeavoured to strengthen the banking sector and restore confidence among financial
institutions in Poland. In 2009, the NBP cooperated pursuant to new legal framework. Whereby
support to the stability of the domestic financial system explicitly received statutory footing as
a core task of the NBP. In fulfilling these tasks, the NBP continued operations providing banks
with liquidity, introduced at the end of 2008 under the Confidence Package. The character of
those measures was designed to address the current needs of banks. Whereas the loan
portfolio shrank, the NBP took actions in order to ease the restrictions regarding the availability
of loans for economic entities; in particular, the Bank initiated the Pact for the Growth of
Lending in Poland. The NBP prolonged the refinancing operations for banks and made
additional funds from early redemption of the NBP bonds and lowering the required reserve
rate available to them. Moreover, the NBP introduced a bill discount facility. This new
instrument is designed to facilitate the access of banks to refinancing of new lending. In 2009,
in pursuance of the national financial system stability, the NBP continued to cooperate with the
Ministry of Finance and Polish Financial Supervision Authority under the Financial Stability
Committee. It was the first full year during which the principles for this co-operation were
regulated by the Act on the Financial Stability Committee. As a result of its analytical and
research activity, the NBP prepared numerous studies and analyses – cyclical and problem-
-oriented – regarding the stability and development of the financial system in Poland.
The results of these analyses were discussed by the Financial Stability Committee.
11. The main goal of issue of currency by the NBP was to ensure a safe and liquid cash turnover
cycle. As at the end of 2009, the value of currency in circulation (including bank vault cash)
amounted to PLN 100,344.8 million. This represents a decrease in cash by PLN 1,789.9 million,
i.e. by 1.75% in relation to the end of 2008. The NBP continued the issue of collector coins. In
2009, 1,691,500 pieces of coins were issued, with 149,500 pieces of gold coins and 1,542,000
pieces of silver coins. Design elements covered 15 topics. In 2008, in turn, 1,707,400 pieces of
collector coins were issued (including 97,400 pieces of gold coins and 1,610,000 pieces of silver
coins), i.e. approx. 1% more than in 2009.
2009
Annual Report 2009
Summary
12. In the management of foreign exchange reserves, the NBP sought to maximise the return while
ensuring the safety of invested funds and their necessary liquidity. Pursuant to the Long-term
Foreign Exchange Reserves Management Strategy adopted in 2007, the year 2009 saw an
expansion of investment risk management methods, as well as application of the advanced
optimisation models for determining strategic and tactical allocation of assets. While taking into
account the currently prevailing market conditions, the Bank also continued the process of
diversification of investment instruments. Although prices of government securities fell, as signs
of recovery occurred in the global economy, the rate of return on reserves in 2009 remained
positive both in the currency and zloty instruments (0.5% and 1.9%, respectively). The
accumulated return on reserves, starting from the introduction of the Strategy amounted to
9.1% in the currency instruments and 23.8% – when expressed in the zloty. Meanwhile, in
2009, the NBP reported high income from investment activity related to the foreign exchange
currency reserves management, PLN 6.1 billion in 2009 as compared to PLN 6.9 in the previous
year (excluding exchange rate differences).
13. The NBP – as part of its foreign exchange operations – maintained a register of bureaux de
change, issued decisions on foreign exchange matters and monitored and controlled foreign
exchange transactions. In 2009, a total of 282 decisions and 7 resolutions on foreign exchange
were issued. Altogether, 3,006 inspections of foreign exchange trading were conducted. As at
31 December 2009, 4,355 bureaux de change were operating in Poland.
14. With respect to payment system the NBP principally handled cash settlements and oversaw
payment systems, authorisation and clearing systems as well as securities settlement and
clearing systems. In 2009, the clearing of EuroELIXIR system was transferred from the SORBNET-
-EURO system to the TARGET2-NBP system; the SORBNET-EURO system was adjusted
accordingly. Henceforth, the banks which are not direct participants of the TARGET2 system
could participate in the clearing of EuroELIXIR system. Moreover, the Bank launched a project
on the SORBNET-EURO 2012 release (SE-2012); and contributed to the development of a new
NBP-PHA application, which will replace the SORBNET-EURO system. In addition, work
progressed on regulatory, research, educational and promotional activities regarding the
payment system. The prime emphasis was put on the promotion of non-cash payment turnover.
Works on the comprehensive Scheme for Development of Non-cash Transactions in Poland for
the Years 2009–2013 were completed. The NBP also continued its co-operation with the
banking sector, most specifically within the framework of the Payment System Council and
projects carried out in co-operation with the Polish Bank Association.
15. In 2009, the Management Board of the NBP adopted the Strategy for Economic Education for
the Years 2010–2012. The program aimed at increasing economic knowledge and social
awareness of the role and mission of the central bank in the economy. A wide-ranging agenda
of educational activities addressed a variety of audiences. Overall, 71 educational projects were
implemented. They aimed at schools, students, journalists and the clergy, including 43 projects
involving the media. Work continued toward expansion and enhancement of the educational
offer available from the NBPortal.pl. In 2009, the Economic Education Portal recorded more
than 1 million visits and the number of participants of e-learning courses amounted to approx.
20 thousand. The number of completed courses increased by 2% in comparison to the year
2008. Moreover, Obserwator Finansowy (Financial Observer), a new internet portal dedicated
to current economic events in Poland and in the world. The project was launched to establish
the NBP Centre for Promotion and Economic Education, an institution intended to promote
economic knowledge.
16. By maintaining central government accounts the NBP contributes to the safety and liquidity of
public funds settlements. The NBP operates PLN and foreign currency accounts, including
accounts for processing funds coming from the European Union budget. In 2009, the NBP
provided services to 3,928 clients and operated 17,728 accounts. It also handled international
liabilities and receivables of the state budget and trading in Treasury securities, and cooperated
with the Ministry of Finance in respect of public debt management.
17
2009
18
Summary
N a t i o n a l B a n k o f P o l a n d
17. The year 2009 saw publishing of the Report on Full Membership of the Republic of Poland in
the Third Stage of the Economic and Monetary Union, together with the study Poland in the
Face of the World Economic Crisis. The NBP research focused on Poland’s participation in the
Exchange Rate Mechanism II, monetary policy and inflation processes, economic condition of
enterprises and households, impact of global financial crisis on the functioning of world
markets, structural changes in the economy, determinants of economic development, world
economy, national and international economic climate, the balance of payments, labour and
property markets. Results of the research were basic inputs to develop and improve the
modelling tools intended to develop forecasts. The findings of research and analytical works fed
into the decisions taken by the Management Board of the NBP and the Monetary Policy Council.
The NBP Economic Research Committee has been appointed to carry out research projects.
18. The NBP actively participated in works concerning the ECB and other European institutions
statistics. In 2009, implementation reporting solutions, previously developed by the ESBC was
a focal point in this area. The NBP continued works on a new system of data collection and
processing for the balance of payment statistics and investment funds statistics. In 2010, the
development of PEGAZ IT system was completed. It was intended for data collection and
processing for the purpose of the above mentioned statistics. Changes in monetary and
financial statistics, related to introduction of modified requirements of the ECB, were prepared
with respect to technical and legal issues. The NBP started to release financial accounts on
regular basis. In 2009, methodological material concerning seasonal adjustment of statistical
data was prepared.
19. The NBP representatives attended meetings of the Committee of the Council of Ministers and
the European Committee of the Council of Ministers. In 2009, the NBP also took part in the
works of the following inter-department bodies: the Financial Stability Committee, the Polish
Financial Supervision Authority, the Trilateral Commission for Social and Economic Affairs, the
Financial Market Development Council, the Committee for Export Insurance Policy and the
Public Debt Management Committee. The NBP also co-operated with state authorities, issuing
opinions on bills (both prescriptive and non-prescriptive) in the scope of economic policy and
banking system. As a member of the ESCB, the NBP issued opinions on draft ECB opinions
concerning EU bills, as well as on draft ECB opinions concerning national legal acts of EU
Member States on the competence of the central bank.
20. In 2009, the NBP also maintained its liaison with international financial institutions, in particular
with the World Bank, the International Monetary Fund, the Organisation for Economic Co-
-operation and Development, the Bank for International Settlements, and the European Bank
for Reconstruction and Development. A good deal of work in this field went into countering
the world financial crisis, on reforms of international institutions and changes in global financial
architecture. The NBP continued to cooperate with Polish public institutions in order to develop
a common position to be presented by Poland before the aforementioned institutions.
Moreover, the scope of technical assistance provided by the NBP to central banks of countries
undergoing economic transformation was expanded. As part of the aforementioned activities,
a twinning project was launched to support the National Bank of Ukraine. The project is carried
out jointly with Deutsche Bundesbank.
21. In 2009, the average employment of the NBP stood at 3,770 full-time posts and the number
declined by 199, i.e. 5.0%, as compared to 2008. Decrease in employment resulted mainly
from the Concept of Optimizing Operations of the NBP Regional Branches, approved by the
Management Board of the NBP on 26 September 2008 and fully implemented in June 2009. In
2009, personnel expenses (including reserves and payroll surcharges) as compared to the
preceding year rose by 4.1%.
22. Pursuant to Article 69.1 of the Act on the National Bank of Poland, the NBP Financial
Statements as at 31 December have been reviewed by a certified auditor appointed by the
Monetary Policy Council. The independent certified auditor who audited the financial
2009
Annual Report 2009
Summary
statements issued an unqualified opinion on the statements on 29 March 2010. The opinion of
the independent certified auditor on the abbreviated financial statements is presented
in Chapter 15.
23. In 2009, the NBP posted a profit of PLN 4,165,554.4 thousand. The increase in profit resulted
mainly from the income realized by the NBP on foreign exchange currency reserves transactions
(profit on financial operations).
19
2009
20 N a t i o n a l B a n k o f P o l a n d
Annual Report 2009
1
GOVERNING BODIES
OF THE NBP
2009
22
Governing bodies of the NBP
N a t i o n a l B a n k o f P o l a n d
Pursuant to the Act on the National Bank of Poland of 29 August 1997,4 which took effect
on 1 January 1998, the governing bodies of the NBP comprise the President of the National Bank
of Poland, the Monetary Policy Council and the Management Board of the National Bank of
Poland.
1.1. President of the National Bank of Poland
In the performance of his responsibilities, the President of the National Bank of Poland
presided over the meetings of the Monetary Policy Council and the Management Board of the NBP,
and took part in the meetings of the General Council of the European Central Bank.
In 2009, while representing the central bank and Poland in liaising with foreign institutions,
the President of the NBP attended, among others, the following meetings:
• the annual meeting of the Board of Governors of the European Bank of Reconstruction
and Development;
• the annual meeting of the Board of Governors of the World Bank and the International
Monetary Fund;
• an unofficial meeting of the ECOFIN Council;
• meetings of Governors of the Bank for International Settlements in Basel.
In 2009, the President of the NBP issued 25 regulations, which primarily concerned:
• the manner of performing international settlements;
• the scope, procedure and deadlines for submission of information to the Bank Guarantee
Fund by banks covered by the obligatory deposit guarantee scheme;
• specification of the design, alloy, fineness, mass and mintage of coins and dates of
introducing them into circulation.
Moreover, the President of the NBP published two announcements.
As the superior of central bank staff, the President of the NBP participated in developing and
implementing the human resources policy and overseeing compliance with work standards
at the NBP.
1.2. Monetary Policy Council
In 2009, the Monetary Policy Council (MPC) acted in accordance with the Monetary Policy
Strategy beyond 2003 and the Monetary Policy Guidelines for 2009.
In 2009, the MPC held 25 meetings (including 12 two-day meetings) and adopted 15
resolutions, published in Monitor Polski (Official Gazette) and Dziennik Urz´dowy NBP (Official
Journal of the National Bank of Poland), as well as three non-normative resolutions.
4 Journal of Laws of 2005 No 1, item 2, as amended.
2009
Annual Report 2009
Governing bodies of the NBP
On 23 December 2009, the MPC introduced a discount rate, starting from 1 January 2010,
and specified its level at 4% per annum.
Table 1 presents NBP interest rates as at the end of 2008 and 2009.
Table 1
NBP interest rates as at the end of 2008 and 2009 (in per cent)
Source: NBP data.
Furthermore, the MPC passed resolutions, with the aim to:
• approve the annual financial statements of the National Bank of Poland as at 31 December
2008;
• amende the resolution on establishing a ceiling on the liabilities arising from loans
extended by foreign banking and financial institutions to the National Bank of Poland (for
the year 2009);
• approve the Report on Monetary Policy Implementation in 2008;
• assess the activity of the NBP Management Board with regard to the implementation of
monetary policy guidelines in 2008;
• approve of the Report on the Operations of the National Bank of Poland in the Year 2008;
• amend the resolution on the rates of the reserve requirements for banks and the interest
rate for of the reserve requirements;
• establish a ceiling on the liabilities arising from loans extended by foreign banking and
financial institutions to the National Bank of Poland;
• establish monetary policy guidelines for 2010;
• approve the NBP financial plan for 2010;
• determine the reference rate, interest rate on refinancing loans, interest rate on term
deposits and rediscount and discount rates for NBP bills of exchange;
• determine the reference rate, rate on refinancing loans, interest rate on term deposits and
discount rate in the National Bank of Poland (four resolutions);
• amend accounting principles, the arrangement of assets and liabilities in the NBP balance
sheet, and of the NBP profit and loss account.
In the performance of its responsibilities arising from Article 23 of the Act on the National
Bank of Poland, the MPC adopted the following documents:
• balances of payments of the Republic of Poland for 2008 Q3 and Q4 and for 2009 Q1
and Q2;
23
5.0 3.5 6.5 5.0 3.5 2.0 5.25 3.75
31 Dec 2008 31 Dec 2009 31 Dec 2008 31 Dec 2009 31 Dec 2008 31 Dec 2009 31 Dec 2008 31 Dec 2009
Reference
rate
Lombard
loan
Deposit
at the NBP
Bill of exchange
rediscount
2009
24
Governing bodies of the NBP
N a t i o n a l B a n k o f P o l a n d
• International Investment Position of Poland in 2008;
• Forecast of Poland’s Balance of Payments in 2010;
• Opinion on the Budget bill for 2010.
The MPC adopted three quarterly reports on inflation (in February, June and October), which
included an assessment of inflation perspectives in the context of the monetary policy.
1.3. Management Board of the National Bank of Poland
Pursuant to the Act on the National Bank of Poland, the activity of the NBP is managed by the
Management Board. The NBP Management Board adopts resolutions on matters which are not the
exclusive competence of other governing bodies of the NBP, and implements MPC resolutions.
The Management Board of the NBP performed its basic responsibilities according to the National
Bank of Poland Plan of Activity 2007–2009, and the Financial Plan of the National Bank of Poland
for 2009.
Pursuant to the Act on the NBP, the Management Board drafted resolutions and materials
for the meetings of the MPC, concerning in particular:
• inflation projections;
• current macroeconomic developments, including the development of inflation processes,
the condition of public finance, the economic situation of enterprises and households,
the developments in the labour, financial and credit markets;
• economic and formal determinants of Poland’s ERM II participation and accession to the
euro area;
• the stability of the financial system in Poland, including the assessment of the banking
system operation and perspectives for development;
• liquidity of the banking sector and open market operations.
Moreover, the NBP Management Board dealt with the situation in the financial sector, issues
arising from the EU integration process, and ongoing issues related to the Bank’s activity. A special
attention was paid to the situation of the banking sector in the context of the crisis in the world
markets. In particular, the following issues were discussed:
• management of official reserves, including the strategic allocation of assets;
• drawing on the IMF’s Flexible Credit Line;
• national coordinating structure related to the introduction of euro in Poland;
• operations of the Polish payment system;
• scientific and research activities of the NBP;
• Concept of Optimising the Operations of the NBP Regional Branches.
In 2009, NBP Management Board held 86 meetings to adopt 97 normative resolutions,
42 non-normative resolutions, and 609 decisions.
2009
Annual Report 2009
Governing bodies of the NBP
The Management Board of the NBP adopted resolutions primarily concerning the following
matters:
• Amendment to the resolution on the procedure and detailed principles of transmitting by
banks to the National Bank of Poland of data needed to determine the monetary policy
guidelines and to periodically evaluate the monetary standing of the state, as well as to
assess the financial situation of banks and the banking sector risk. One of the key
amendments introduced by this resolution was to eliminate double reporting. More
specifically, model reports, concerning foreign exchange position of a bank, were removed
from the WEBIS reporting package. The reports helped to determine foreign exchange risk
and the solvency ratio, as part of the reporting carried out under the COREP reporting
package.
• Amendment to the resolution on conducting foreign exchange swaps by the NBP. The
amendment sought to streamline and optimise the NBP decision-making process with
regard to the acceptable currency volume provided to banks under foreign exchange
swaps conducted with the NBP.
• Amendment to the resolution on implementing the “By-laws for the operation by the
National Bank of Poland of securities accounts and deposit accounts and sub-accounts,
handling operations on securities and registering them in deposit accounts and subaccounts
of these securities”. The resolution extended the catalogue of securities which
are subject to repo operations carried out by the NBP with other banks under open market
operations by adding securities other than Treasury bills or Treasury bonds. Another
amendment to the resolution was related to entry into force of the Act amending the Act
on toll motorways and the National Road Fund and of the Act on the National Bank of
Poland. Whereby the NBP could organise trade in securities covered or guaranteed by the
State Treasury. The resolution admitted the Treasury securities tender system to provide
services to the participants of auctions for bonds issued by BGK and extended the
catalogue of securities used in outright transactions by adding securities other than
Treasury securities.
• Amendments to the resolution on the introduction of Regulations on refinancing of banks
with a lombard loan by the National Bank of Poland. The resolution aimed at expanding
the list of securities eligible at the NBP to collateralize this category instruments by adding
debt securities denominated in foreign currencies. The objective of a further amendment
was to adjust the regulations on refinancing of banks with a lombard loan to the New
Deposit and Settlement System introduced by the National Depository for Securities
(KDPW SA).
• Introduction of a model agreement on the terms and conditions for opening and operating
a euro account in the TARGET2-NBP system. Amendment to the resolution addressed the
transfer of settlement of the EuroELIXIR system, operated by KIR-SA, from the SORBNET-
-EURO system onto a TARGET2 single shared platform (SSP), scheduled for June 2009, and
the need to introduce multiple changes to the current model agreement for banks which
are direct participants of the TARGET2-NBP system. Another amendment to the resolution
concerned the need to implement the latest ECB guidelines from September 2009 on
Trans-European Automated Real-time Gross Settlement Express Transfer System
(TARGET2) and previously adopted ECB guidelines from October 2008 and May 2009.
• Terms and conditions of selling coins, banknotes and numismatic items intended for
collections and other purposes by the National Bank of Poland. The main goal of the
resolution was to introduce new principles for selling collector items. Pursuant to the
resolution, starting from 2010, collector items shall be sold at Internet auctions involving
both legal and natural persons. The price shall be determined during the auction in
accordance with arm’s length principle and it shall be uniform for all recipients.
25
2009
26 N a t i o n a l B a n k o f P o l a n d
• Procedures and detailed principles of transmitting by banks to the National Bank of Poland
of data to produce a balance of payments and statement on international investment
position. Thanks to the implementation of this resolution the NBP could adjust the manner,
scope and calendar of data transmission to the requirements of the European law and ECB
guidelines. Banks will be relieved of some of their reporting duties related to the balance
of payments and international investment position requirements.
• Accession of the National Bank of Poland to World Economic Forum. Acceptance by the
NBP of World Economic Forum’s proposal shall result in the NBP gaining the status of an
institutional partner and improve the reputation of the NBP in the scope of research
activity, emphasize the role of the NBP in international economic debate as well as expand
technical co-operation with other central banks.
• Amendments to the Rules of Procedure of the NBP.
The NBP Management Board took decisions aimed, in particular, to:
• approve the Co-operation Agreement between the NBP and the Polish Financial
Supervision Authority within the scope of the banking sector reporting;
• approve the Report on Full Membership of the Republic of Poland in the Third Stage of
Economic and Monetary Union with a Supplement: Financial and Economic Crisis –
Implications for Poland’s Integration with Euro Zone;
• approve Strategy for Development of Non-cash Transactions in Poland in Years
2009–2013;
• authorise the NBP to conclude a co-operation agreement on performance of
responsibilities resulting from the NBP’s participation in the STEP2 system and concerning
clearing in the TARGET2-NBP system of euro-denominated payment orders settled in the
EuroELIXIR system.
• authorise the NBP to perform an entry point function for domestic payments in euro,
received by the NBP from the STEP2 system;
• recommend the conclusion of Memorandum of Understanding regarding the exchange of
supervisory information concerning payment card systems;
• approve the conclusion of Co-operation Agreement between the National Bank of Poland
and the National Bank of the Republic of Belarus;
• approve the report Poland in the Face of the World Economic Crisis;
• approve the National Certification Centre certification policy, version 2.0,
• adopt the Strategy for Economic Education for the Years 2010–2012;
• adopt the Strategy for the Development of Technical Assistance Offered by the National
Bank of Poland the Years 2010–2012;
• adopt the reports on the performance of tasks of the NBP Management Board
Plenipotentiary for euro introduction;
• adopt the reports on the performance of tasks of the NBP Management Board
Plenipotentiary for improving the activity of the NBP regional branches;
Governing bodies of the NBP
2009
Annual Report 2009
Governing bodies of the NBP
• adopt the direction of changes proposed in the Reorganisation Concept for the NBP Head
Office and the Support Services Office. The changes were aimed to enhance the
operations of the NBP Head Office and the Support Services Office.
1.4. Implementation of the National Bank of Poland Plan of
Activity 2007–2009
In 2009, the implementation of the National Bank of Poland Plan of Activity 2007–2009
was completed. The Plan was adopted by the NBP Management Board in January 2007.
On 10 December 2009, the NBP Management Board adopted a new Plan of Activity
2010–2012, taking into account the guidelines and arrangements in Strategy for the Management
of the National Bank of Poland for the Years 2010–2012, adopted by the NBP Management Board
in October 2008.
27
2009
28 N a t i o n a l B a n k o f P o l a n d
Annual Report 2009
2
MONETARY POLICY
2009
30
Monetary policy
N a t i o n a l B a n k o f P o l a n d
2.1. Monetary policy strategy
According to Article 227 para. 1 of the Constitution of the Republic of Poland, ”the National
Bank of Poland shall be responsible for the value of Polish currency”. The Act on the National Bank
of Poland of 29 August 1997 states in Art. 3 that ”the basic objective of NBP activity shall be to
maintain price stability, and it shall at the same time act in support of Government economic
policies, insofar as this does not constrain pursuit of the basic objective of the NBP”.
Contemporary central banks understand price stability as inflation low enough so as not to
exert negative influence on investment, savings and other important decisions taken by economic
agents. Ensuring thus understood price stability is a fundamental way in which the central bank
contributes, by means of its decisions, to high and sustainable economic growth. Central banks
view price stability symmetrically, which means that they respond both to inflationary and
deflationary threats.
The Monetary Policy Council, henceforth the ”MPC” or the ”Council”, bases its monetary
policy on the inflation targeting strategy. International experience shows that this strategy is an
effective method of ensuring price stability. Having brought inflation down to a low level, in 2004
the MPC adopted a permanent inflation target of 2.5% with a symmetrical tolerance range for
deviations of ± 1 percentage point. The MPC pursues this strategy under a floating exchange rate
regime. The floating exchange rate regime does not rule out foreign exchange interventions should
they turn out necessary for the inflation target implementation.
In the Monetary Policy Guidelines for 2009 the Council maintained the following
understanding of the inflation target and the way of its implementation:
• First, the notion of permanent inflation target means that it refers to inflation measured as
a year-on-year change in prices of consumer goods and services in each month compared
to the corresponding period of the preceding year. For a better understanding of inflation
processes it is also justified to use quarterly and annual inflation indices such as those used
in the NBP’s inflation projection, in the central budget and in the statistics of the European
Union. An important role in the assessment of inflationary pressure is also played by core
inflation indices.
• Second, the adopted solution means that the monetary policy is unequivocally focused on
maintaining inflation as close as possible to the target of 2.5% and not only within the
tolerance range. The adopted solution provides an anchor for inflation expectations, thus
facilitating the pursuit of monetary policy, which in case of shocks requires smaller and less
frequent interest rate changes.
• Third, the occurrence of shocks in the economy is inevitable. Depending on the strength
of the shock and the degree of inertia of inflation expectations the scale and the duration
of inflation deviation from the adopted target that may differ. The central bank normally
does not respond to deviations from the inflation target which it deems temporary and
which lie within the tolerance range around the target. In countries with a permanently
low inflation, the central bank does not have to respond even when inflation leaves the
tolerance band temporarily. In the case of shocks viewed as leading to a permanent
deviation from the inflation target, the central bank adjusts its monetary policy
accordingly.
• Fourth, monetary policy reaction to shocks also depends on their causes and nature. The
reaction to demand shocks is a relatively minor issue, since in this case inflation and output
move in the same direction. An interest rate increase weakens economic activity and,
consequently, inflationary pressure. Supply shocks are a more difficult problem from the
point of view of monetary policy, as in this case output and inflation move in opposite
2009
Annual Report 2009
Monetary policy
directions. Inappropriate monetary policy reaction to such a shock may have far-reaching
negative consequences for the economy. An attempt to fully neutralise the impact of
a supply shock on inflation through monetary policy may lead to an unnecessary plunge in
output, as the supply shock itself already has a negative effect on consumption and
investment. On the other hand, an attempt to fully accommodate – by pursuing
expansionary monetary policy – the real effects of a supply shock resulting in a price
increase and output decrease usually leads to persistently higher inflation, which, in turn,
requires a far more restrictive monetary policy in subsequent periods, bringing about
a stronger deceleration in economic growth. The reaction of the central bank should
depend on the assessment of the durability of the shock’s effects.
• Fifth, most supply shocks are transitory and limited in scale. Thus, they do not require an
immediate reaction. However, in the case of strong shocks even temporary acceleration in
price growth may bring about a relatively permanent rise in inflation expectations and, in
turn, an increase in inflation due to the emergence of wage demands. In such a situation,
monetary policy has to prevent secondary effects of the supply shock (the so-called
second-round effects). The risk of such effects is substantial in countries with a short
history of low inflation. Useful in analysing supply shocks are core inflation indices, which
help to distinguish, at least roughly, temporary effects from permanent changes in
inflationary pressure.
• Sixth, because the reaction of output and inflation to the pursued monetary policy is
delayed, its influence on the level of current inflation is limited. Current decisions of the
monetary authorities affect price developments in the future just as current inflation is
influenced by interest rate changes made several quarters ago. However, the length of
these lags is not constant and, to a large extent, depends on structural and institutional
changes ongoing in the economy. Changes in the monetary transmission mechanism
result in a situation in which central banks can only approximately determine the time lag
between an interest rate decision and its strongest observed impact on real variables
(output, employment) and then on inflation.
• Seventh, monetary policy affects the economy not only by changing interest rates but also
by keeping them unchanged for a period of time. The decision to keep interest rates
unchanged for several periods (months or quarters) has substantial consequences for the
economy as well, because it leads to a gradual widening or narrowing of the output gap.
• Eighth, monetary policy is pursued under uncertainty. Large uncertainty is, among others,
due to the fact that inflation projection models used by central banks may start to describe
economic processes less adequately owing to the ongoing structural changes in the
economy. This means that:
– while making decisions it is necessary to take into account all available information,
rather than just the inflation projection;
– it is not possible to adopt a simple policy rule which could be known ex ante to market
participants and
– forward-looking monetary policy has to be presented to the public as an attempt to
achieve the inflation target under uncertainty, rather than an exercise of strict control
over economic processes.
• Ninth, while assessing the inflation outlook, especially when inflation is low, central banks
take into account the prices of assets because of the need to ensure financial stability. In
the conditions of liberalised financial markets and amid favourable developments on the
supply side of the economy supporting low inflation, it is becoming ever more essential for
monetary authorities to allow for financial stability considerations in their decisions. If in
31
2009
32
Monetary policy
N a t i o n a l B a n k o f P o l a n d
response to low inflation central banks reduce interest rates too much, this may lead to
rapid asset price growth. This growth is accompanied by the risk of the so-called unstable
boom, where higher inflation emerges with a considerable lag. Such rapid growth in asset
prices is also accompanied with the rising risk of their sudden and considerable slump,
which poses a threat to the stability of the financial system and to the real economy.
Financial system stability ensures effective operation of the transmission mechanism, which
is crucial for appropriate monetary policy implementation. In assessing the inflation
outlook and the risk of turmoil in the asset market, it may be useful in the longer run to
account for the paths of monetary aggregates.
• Tenth, in assessing monetary conditions, not only the level of real interest rates should be
considered but also the level of the real exchange rate. Thus understood restrictiveness of
monetary policy impacts, along with the implemented fiscal policy, the total restrictiveness
of macroeconomic policy. An overly expansionary fiscal policy is the most common reason
that necessitates keeping the interest rates at a higher level.
• Eleventh, an important input into monetary policy decision-making process is the balance
of factors affecting the probabilities of future inflation running above or below the target.
This balance is based on the inflation projection, the assessment of the actual economic
developments, which may deviate from the scenario presented in the projection, as well
as the course of variables and information not accounted for directly in the projection.
While assessing the factors affecting future inflation, central banks take into consideration
the path of inflation in the past since it has a bearing on the anchoring of inflation
expectations at the level of the inflation target. In this context it is important to consider
the length of the period in which inflation remained close to the target and the length of
the period in which it deviated from the target.
Furthermore, the Council has stated that if a binding decision were to be taken on the
scheduled date of Poland joining the euro area and the related entry to ERM II, the Council would
make all necessary adjustments of the monetary policy strategy and – in consultation with the
Council of Ministers – of the exchange rate policy to conditions ensuing from the necessity of
meeting the convergence criteria indispensable for the euro adoption. Such binding decision,
however, was not taken. The Council maintained its opinion that the accession of Poland to the
euro area should take place at the earliest possible date. The Council also expressed the view that
in the coming years economic policy in Poland should be conducted in such a way as to enable –
by implementing structural reforms – the sustainable fulfilment of the Maastricht criteria and, at
the same time, the maximisation of benefits related to the euro area accession.
2.2. Macroeconomic conditions of NBP monetary policy in 2009
In 2009, the monetary policy of central banks, including the National Bank of Poland, was
pursued in the conditions of global economic recession and persisting disturbances in financial
markets.
At the beginning of 2009, most countries saw a deepening of the recession originated back
in 2008, which was reflected in a strong fall of GDP, marked deterioration in the labour market
and worsening of economic agents’ sentiment. At the same time, heightened uncertainty and high
risk aversion continued to persist in international financial markets, which brought about a further
decline in asset prices and disturbances in the functioning of those markets.
While in 2008 recession primarily hit developed countries, at the end of 2008 and the
beginning of 2009 a considerable decline in economic activity also occurred in emerging
economies, including Central and Eastern European countries, all of which – except for Poland –
2009
Annual Report 2009
Monetary policy
suffered GDP falls in 2009. The main channels through which the global crisis affected these
economies included: a collapse in world trade5 at the end of 2008 and at the beginning of 2009,
growth in risk aversion in financial markets resulting in capital outflows from those countries and
a strong depreciation of their currencies (which raised the value of foreign debt expressed in
domestic currency and the costs of its servicing, though at the same time it improved the price
competitiveness of those economies versus developed countries), a pronounced credit tightening
by financial institutions and deterioration in economic agents’ sentiment.
In 2009 Q2 recessionary tendencies in the global economy were gradually slowing down
and in the following quarters global GDP started to rise again. Nevertheless, the scale of
improvement in the economic situation of particular countries and regions varied. In the largest
developed economies, despite some improvement in economic activity, a GDP slide was recorded
in the whole of 2009.
Together with a gradual improvement in the real economy, starting from 2009 Q2 an on-
-going stabilisation in financial markets could be observed, which was reflected in the growth of
prices of some financial assets and in the appreciation of emerging economies’ currencies. The
improvement in both economic activity and the situation in financial markets was to a large extent
the result of a highly expansionary macroeconomic policy pursued in many countries. It involved
a significant loosening of monetary policy (in particular interest rate cuts to historically low levels
and liquidity support, including asset purchases by central banks leading to an increase of the
monetary base) as well as a strong fiscal stimulus.
Figure 1
GDP growth (left-hand graph) and main interest rates of selected central banks (right-hand
graph)
Source: Reuters EcoWin data.
Despite the signs of a gradual deceleration in unfavourable tendencies in many countries,
uncertainty about the sustainability of economic recovery persisted in the whole of 2009. This
uncertainty was largely associated with the unknown impact of the financial crisis on the growth
rate of potential output, difficult to predict reaction of the economy to the withdrawal of stimulus
programmes, as well as long-term effects of a severe deepening of the fiscal imbalance and the
rising public debt.
33
Poland USA Euro area Czech Republic Hungary
0
2
4
6
8
10
12
14
16
18
20
-10
-8
-6
-4
-2
0
2
4
6
8
10
per cent per cent
2001 2002 2003 2004 2005 2006 2007 2008 2009 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
5 According to IMF estimates, the volume of world trade exchange in 2009 shrank by 10.7%, which was primarily
connected with a significant reduction of demand, uncertainty as to the economic standing of particular countries and
the narrowing possibilities of using financial intermediation.
2009
34
Monetary policy
N a t i o n a l B a n k o f P o l a n d
In 2009 – along with the deepening recession in the global economy – a marked decline in
inflation was observed in most countries. According to estimates of the International Monetary
Fund, inflation in developed countries fell from 3.4% in 2008 to 0.1% in 2009 and in the
developing countries – from 9.2% to 5.2%. A significant reduction in inflation – which brought
annual price growth in the euro area, the United States and Japan temporarily below zero in mid-
2009 – was primarily connected with a strong decline in the prices of agricultural and energy
commodities, negative base effects and low demand pressure associated with limited economic
activity. Together with the stabilisation of economic activity and the recovery in world trade,
commodity prices rose, which was also supported by falling risk aversion and high liquidity in
global financial markets. At the same time, a rise in inflation was observed, even though it
remained at a low level. In many countries inflation remained at an elevated level throughout
2009, which largely resulted from the earlier depreciation of the exchange rate.
Changes occurring in 2009 in the global economy significantly affected the course of
economic processes in Poland. Although Poland’s economy exhibited relatively high resistance to
the global crisis6 – which was, among others, attributable to a smaller than in other economies of
the region share of exports in GDP, a floating exchange rate and a lesser dependence on credit –
economic activity declined considerably in 2009 (Appendix 1). The annual GDP growth fell from
5.0% in 2008 to 1.8% in 2009, and domestic demand decreased in 2009 by 0.9% y/y (against an
increase of 5.5% y/y recorded in the preceding year). The recession in the major trade partners
contributed to the reduction in foreign demand for goods and services produced in Poland. At the
same time, a significant depreciation of the zloty exchange rate – caused by increased risk aversion
in global financial markets in 2008 Q4 and early 2009 and the ensuing foreign capital outflows
from emerging economies – contributed to a rise in price competitiveness of Polish products.
As a result, in 2009 exports decreased by 8.0% and imports by 13.5%, turning the contribution
of net exports to GDP growth positive and making it the main demand factor of economic growth
in Poland (the contribution of net exports to GDP growth was 2.7 percentage points). A reduction
in foreign demand and worsening prospects for the development of economic activity contributed
also to a decline in domestic demand, which was primarily driven by a reduction in inventories and
investments of enterprises. At the same time, consumption continued to rise, although its growth
rate clearly decreased. The economic slowdown was accompanied by a significant deterioration in
the labour market, leading to a decline in employment levels and a concurrent rise in
unemployment. The nominal and real wage growth also slowed down, which limited the
employment decline and the unemployment increase. Rapid adjustment in the level of wages and,
consequently, limited reductions in employment were some of the factors distinguishing this
downturn from a slowdown of 2001–2002.
The strong economic slowdown also contributed to a substantial deterioration in public
finances, whose deficit in relation to GDP almost doubled in 2009 reaching 7.1%. The increased
fiscal imbalance resulted from both the effects of the so-called automatic stabilisers7 and higher
structural deficit of public finances, which was one of the factors mitigating the impact of the crisis
on the Polish economy.
The economic slowdown was accompanied by a fall in lending to enterprises and
a significant reduction in the growth rate of household indebtedness (Appendix 4). The
deceleration in lending was the result of the tightening of credit policy by banks due to limited
transactions in the interbank market, increased credit risk of enterprises and households and
a deterioration of banks’ loan portfolios.
6 Poland was the only country of the European Union which recorded GDP growth in 2009.
7 Automatic stabilisers trigger spontaneous adjustment of the budget deficit in response to fluctuations in economic
activity, which has a stabilising effect on the economy. This is because during an economic slowdown, the deficit
automatically increases as a result of falling tax revenues and rising expenditure associated with unemployment and
social security, while in the recovery phase a reverse phenomenon occurs.
2009
Annual Report 2009
Monetary policy
Figure 2
EUR/PLN exchange rate in 1999–2010
Source: NBP data.
Figure 3
Impact of the major groups on the annual growth of prices of goods and services (left-hand
graph) and the annual growth of prices of consumer goods and services versus the inflation
target (right-hand graph)
Source: GUS data, NBP calculations.
In 2009, the annual growth of prices of consumer goods and services (the Consumer Price
Index – CPI) decreased by 0.7 percentage points as compared to 2008 and amounted to 3.5%,
hovering at the upper limit for deviations from the NBP inflation target set at 2.5% (Appendix 2).
The elevated CPI path in 2009 resulted largely from the effect of factors outside the direct
influence of domestic monetary policy, especially increases of administered prices and excise duty
35
2.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2.5
3.0
3.5
4.0
4.5
5.0
5.5
PLN
per cent
Services
Goods
Energy
Food and non-alcoholic beverages
CPI
2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010
CPI
NBP inflation target
Upper/lower limit for deviations from target
per cent
-1
0
0
1
2
3
4
5
6
1
2
3
4
5
6
2009
36
Monetary policy
N a t i o n a l B a n k o f P o l a n d
rates and the substantial depreciation of the zloty in the period between July 2008 and February
2009, resulting from an increase in risk aversion in global financial markets and outflows of foreign
capital from emerging markets. In March 2009, the zloty exchange rate stabilised, and then –
together with the improved outlook for world economic growth and the decline in global risk
aversion – was gradually strengthening (Figure 2.2). One of the factors that could have contributed
to the stabilisation of the zloty in 2009 was Poland’s obtaining access to the Flexible Credit Line
with the IMF in the amount of USD 20.6 billion.8 The exchange rate appreciation was conducive
to curbing the rise in oil prices observed in the second half of 2009, thus mitigating the growth of
inflation in that period.
2.3. Monetary policy in 2009
Similarly to previous years, in its interest rate decisions the Council on each occasion
considered the midterm inflation outlook, assessing it in the context of past, current and especially
the anticipated economic situation. The decisions of the Council were affected by the changing
assessment of factors influencing the probabilities of future inflation running above or below the
target. The assessment took into consideration the results of subsequent projections of the NBP’s
Economic Institute and other forecasting activities, as well as the developments of variables and
information not directly accounted for in the projections.
In the first half of 2009 – taking into account the macroeconomic data being released and
forecasts pointing to a strong reduction in economic activity in the world and in Poland, which was
conducive to containing inflationary pressures in the medium term – the Council continued the
monetary policy easing started in late 2008. During this period, the NBP interest rates were
reduced on four occasions in January, February, March and June, by a total of 150 basis points (the
NBP reference rate was cut to 3.5%). Additionally, in May 2009 the Council lowered the required
reserve ratio by 0.5 percentage points (from 3.5% to 3.0%).
In the second half of 2009 – in view of the gradually improving situation in the economy
amid persisting considerable uncertainty about the sustainability of the economic recovery – the
Council kept interest rates unchanged. Until September, however, the Council assessed the
probability of inflation running below the inflation target in the medium term to be higher than
the probability of its running above the target. In October the Council changed its assessment of
risks to the achievement of the inflation target in the medium term, seeing the probabilities of
inflation in the medium term running above and below the target to be balanced, thus marking
the end of the monetary policy easing cycle. The Council maintained that assessment till the end
of 2009.
* * *
At the turn of 2008 and 2009, the downturn in economic activity in the world deepened.
Data on GDP and other macroeconomic variables released in the first months of 2009 indicated
that due to the recession in the external environment and the ensuing reduction in the demand
for Polish goods, the economic growth in Poland was significantly slowing. Similarly as abroad, the
8 Flexible Credit Line is an instrument of the IMF aimed at preventing the outbreak and spread of the financial crisis. It
is only granted to countries which have solid economic fundamentals, conducted a responsible macroeconomic policy
in the past and in which there is a will and a high probability of continuing such policy in the future. Apart from
Poland, in 2009 access to the Flexible Credit Line was obtained by Mexico and Colombia. As the Flexible Credit Line
is granted to countries with strong economic fundamentals, it could have fostered a greater differentiation of risk
assessments for the Polish economy and other countries in the region of Central and Eastern Europe, reflecting
a relatively favourable condition and growth prospects of the Polish economy as compared to other economies of
the region.
2009
Annual Report 2009
Monetary policy
economic activity weakening was also connected with the limited credit availability and its elevated
costs due to the significant tightening in loan granting conditions by banks and heightened risk
premia included in market interest rates. Additionally, data on labour market developments
pointed to a decline in employment, increasing unemployment and slowing wage growth, which
was conducive to reducing inflationary pressure. At the same time, inflation remained at an
elevated level due to the increase in administered prices, in particular the prices of energy carriers,
and the depreciation of the zloty. The Council assessed, however, that in the medium term
recession in the global economy, which was contributing to the slowdown in the country’s
economic growth, as well as the easing wage pressure, and the tightening of banks’ credit policy
would curb the inflationary pressure in Poland. Such assessment was also supported by the
projection of inflation and GDP prepared by the NBP’s Economic Institute in February 2009,
according to which the CPI inflation – under the assumption of unchanged interest rates – was to
decline steadily in line with the central projection path to 0.8% in the projection horizon, i.e. till
the end of 2011. At the same time, the projection indicated a significant slowdown in GDP growth,
which in 2009–2010 – assuming unchanged interest rates – was seen at 0.9% and 2.4%,
respectively (in line with the central path), as well as a deepening of the negative output gap and
an increase in the unemployment rate throughout the projection horizon.
Although current inflation remained at an elevated level, at its meetings in January, February
and March the Council concluded that, given the significant deterioration in economic growth
prospects and the expected easing of inflationary pressure, further significant monetary policy
easing9 was required to stabilise inflation at the NBP’s inflation target over the medium term.
Monetary policy easing was also supported by the government’s declared commitment to maintain
discipline in the public finance sector. In January 2009 the Council decided to cut interest rates by
0.75 percentage points, while in February and March – by 0.25 percentage points on each
occasion. The Council assessed that the easing of monetary policy should contribute to stabilising
economic growth around potential output growth, which was expected to support the
achievement of the inflation target in the medium term.
In this period the Council’s decisions were also influenced by the developments of the zloty
exchange rate, which in the first two months of 2009 – similarly as in the second half of 2008 –
was strongly depreciating. On the one hand, the Council pointed out that the depreciation of the
zloty increased the zloty value of foreign currency liabilities of economic agents, which could have
contributed to reducing domestic demand. On the other hand, the Council indicated that the
depreciation was conducive to an increase in inflation. In February 2009, in order to reduce the risk
of a further weakening of the exchange rate, the Council cut the interest rate on a smaller scale
than in January. In the press release following the meeting, the Council also stressed that the
exchange rate of the zloty was weaker than the equilibrium exchange rate and did not reflect the
relatively favourable state and outlook of the Polish economy. The Council also pointed out that
the NBP might make use of instruments directly affecting the zloty exchange rate.
At its meetings in April and May, the Council continued to assess the probability of inflation
running below the inflation target in the medium term as higher than the probability of its running
above the target, yet, at both meetings NBP interest rates were kept unchanged. Such decisions
were primarily justified by the uncertainty surrounding the prospects for economic recovery in
the world and in Poland and about the situation of public finances and their impact on inflation,
the very low level of real interest rates and – at the April meeting – also the persistent uncertainty
regarding the developments of the zloty exchange rate. In May, the Council concluded that the
decline in lending by commercial banks warranted a reduction of the required reserve ratio by
0.5 percentage points, from 3.5% to 3.0%.
At the meeting in June 2009, the Council got acquainted with the latest projection of
inflation and GDP, which indicated that CPI inflation would be falling till the end of 2010 (reaching
37
9 In November and December 2008 the Council lowered NBP interest rates by 0.25 and 0.75 percentage points,
respectively.
2009
38
Monetary policy
N a t i o n a l B a n k o f P o l a n d
the NBP’s inflation target in the first half of 2010) and then it would rise again in 2011, even
though it was expected to stay below the inflation target. In turn, in line with the projection
economic growth in Poland was to slow down till 2009 Q3 and then to accelerate in subsequent
quarters, in the wake of the global economy’s recovery from the recession. The Council assessed
that inflation in the coming months would probably decrease, though it would remain at an
elevated level, mainly due to relatively high annual growth of food prices and administered prices.
At the same time, the Council assessed that in the medium term the drop in demand and subdued
wage pressures resulting from the economic slowdown should both lead to an inflation decrease.
With this in mind, at the June meeting the Council cut NBP interest rates by 0.25 percentage
points, indicating that the effected interest rate cuts and the reduction of the required reserve ratio
would favour the economy’s return to the path of potential growth.
The data released in July, August and September 2009 suggested that economic activity
in Poland was still low. The decline in employment in the enterprise sector was deepening and
the rate of unemployment was rising. At the same time, part of the monthly data, including
those suggesting some acceleration in the growth of retail sales in July, rise of the majority of
economic climate indicators in August and September, as well as data on industrial and
construction and assembly output published in September, signalled the possibility of some
improvement in the overall economic situation. The inflation running in these months above the
upper limit for deviations from the inflation target was mainly due to the previously introduced
increases of administered prices and the earlier depreciation of the zloty. The Council upheld its
assessment that inflation in the following months might still be running at elevated levels mainly
due to the relatively high prices of food and energy carriers, while also stressing that the oil price
hike recorded in this period was partially mitigated by the appreciation of the zloty observed
since February 2009. However, in view of the predictions that a low demand pressure and
a reduced rate of labour costs growth should lead to lower inflation in the medium term, at the
meetings in July and August, the Council assessed the probability of inflation in the medium term
running below the inflation target to be higher than the probability of its running above the
target. The Council kept NBP interest rates unchanged at those meetings. The Council did not
change interest rates in September either and upheld its assessment of the risks to achieving the
inflation target over the medium term formulated in the previous months, yet, it stated that the
probability of inflation running below target in the medium term had decreased. According to
the Council, the previous easing of the monetary policy together with the expected improvement
of the global economic climate were to foster the return of the economy to the path of potential
growth.
In the following months, economic activity in Poland’s main trading partners remained at
a low level, although incoming data pointed to its gradual improvement. Information on the Polish
economy, including data on the output of industry and the construction and assembly sector and
on retail sales, as well as many economic climate indicators, pointed to an improvement of
economic situation in 2009 Q3. In October, the Council got acquainted with the latest projection
of inflation and GDP, which suggested that CPI inflation in 2009 could be higher, and in 2010
much lower than in the June projection, while in 2011 it could rise again while remaining close to
the inflation target. In turn, in line with the central projection economic growth was to remain
below 2% y/y till 2010 Q3. In subsequent quarters, GDP growth was projected to increase slowly
to reach a level close to potential output growth in the second half of 2011. At the same time, the
Council still assessed that inflation would run at a heightened level mainly due to the relatively high
annual growth of food and administered prices. In the opinion of the Council, higher inflation
could also be driven by oil price increases, which were, however, partly offset by the continuing
appreciation of the zloty. The elevated level of inflation could also be supported by possible further
increases of administered prices. In the medium term, the Council expected that the low demand
pressure and limited labour costs growth, amid persistent uncertainty about the future rate of
economic growth, should lead to an inflation decline. Considering these factors, at its meeting in
October the Council kept interest rates unchanged, changing the assessment of risks to achieving
the inflation target over the medium term by stating that the probabilities of inflation running
above and below target over the medium term were balanced.
2009
Annual Report 2009
Monetary policy
In November and December 2009, there appeared further signs of recovery in the global
economy. After several quarters of decline, 2009 Q3 brought GDP growth in the United States
and the euro area. At the same time, incoming data revealed a strong increase in economic
activity in the largest emerging economies. Improved activity in the real economy worldwide was
accompanied with increases in the prices of financial assets, including the appreciation of the
currencies of emerging economies, and growth of commodity prices in international markets.
Data on the Polish economy also pointed to improving economic conditions. In 2009 Q4 inflation
continued to hover above the NBP’s inflation target and the Council expected a temporary
increase in the CPI in the following months. At the same time, in the subsequent quarters the
Council expected a substantial inflation reduction, which was to result – apart from negative base
effects – from low demand pressure, reduced growth of labour costs and the previously observed
appreciation of the zloty. In turn, rising commodity prices in world markets and increases in taxes
and administered prices might – in the Council’s view – mitigate the inflation decline in 2010.
In November and December 2009 the Council confirmed the assessment that the probabilities of
inflation running above and below target were balanced and kept NBP interest rates unchanged.
An important element of conducting monetary policy based on inflation targeting was, as
in previous years, the communication with the public, involving the Council’s presentation of its
assessment of the current state of the economy and the future path of economic processes. The
most important instruments of communication in 2009 included the following cyclical
publications: inflation reports, information from the meeting of the Monetary Policy Council (with
accompanying press conferences organised after the Council’s meetings), Minutes of the
Monetary Policy Council decision-making meetings10 (Appendix 5), as well as the Report on
Monetary Policy Implementation in 2008 and Monetary Policy Guidelines for 2010.
2.4. Monetary policy instruments
In 2009 the National Bank of Poland pursued the monetary policy influencing the inflation
level through the interest rate channel. The Monetary Policy Council set the NBP’s official interest
rates which determined the yield on monetary policy instruments. In order to steer short-term
interest rates, the NBP used the following instruments: open market operations, lending and
deposit operations (standing facilities) and reserve requirements. By influencing the level of short-
-term interest rates of the money market, the Monetary Policy Council strived to achieve such a
level of interest rates in the economy that would be consistent with the adopted inflation target.
Similarly to 2008 Q4, the NBP used a wider set of monetary policy instruments than in the
previous years. In accordance with the so-called Confidence Package introduced in October
2008, in 2009, the central bank conducted regular operations providing zloty liquidity to the
banking sector in the form of repo operations and liquidity in foreign currency in the form of
foreign exchange swaps. Those operations were continued due to persisting tensions in the
domestic financial markets and banks’ limited access to financing in domestic and foreign
currencies.
39
10 Minutes of the Monetary Policy Council decision-making meetings (Appendix 5) present a more detailed discussion
of the problems and arguments which had a significant impact on the decisions taken by the Council in 2009.
2009
40
Monetary policy
N a t i o n a l B a n k o f P o l a n d
2.4.1. Liquidity in the banking sector in 2009
In 2009 the NBP pursued its monetary policy in the situation of constantly increasing liquidity
surplus11 of the banking sector.
The average level of banking sector liquidity in 2009 amounted to PLN 23,940 million. This
means an increase by PLN 12,976 million, i.e. by 118% as compared to 2008. This change resulted
mainly from the influence of so-called autonomous factors independent from the NBP. The level
of short-term liquidity of the banking sector was also affected by measures undertaken by the
central bank.
As regards autonomous factors, the largest contribution to the increase in the level of short-
-term liquidity came from the net purchase by the NBP of foreign currency, originating mainly from
EU funds as well as from exchange of foreign currency into the Polish zloty at the NBP carried out
by the Ministry of Finance. Net purchases of foreign currency contributed to a rise in liquidity
surplus on average by PLN 21,416 million, from December 2008 to December 2009. Another
factor that contributed to the increase of liquidity was the decreasing level of currency in
circulation – from December 2008 to December 2009, by PLN 1,470 million (the annual rate of
changes in currency in circulation amounted in December 2009 to -1.4%). Other factors affected
the liquidity of the banking sector to a lesser extent.
Measures undertaken by the NBP contributing to a rise in short-term liquidity in 2009
involved the following:
– buying back of the NBP bonds before maturity on 22 January 2009 (in accordance with
the decision taken by the Management Board of the NBP) and
– reduction of the required reserve ratio by 0.5 percentage point starting from 30 June 2009
(in accordance with the decision of the Monetary Policy Council).
2.4.2. Monetary policy tools in 2009
In 2009 the set of monetary policy instruments used by the NBP did not differ significantly
from the one used in 2008, modified after the introduction of the Confidence Package. There were
two basic reasons why it was not necessary to introduce considerable modifications in the
operating system of the monetary policy. Firstly, in comparison with other countries, the situation
in the banking sector in Poland worsened to a lesser extent. Another important factor which
influenced the way of the NBP's responding to the spread of the financial crisis, was the growing
level of liquidity surplus of the domestic banking sector. This factor mitigated potential liquidity
tensions connected with the turmoil in the interbank market.
2.4.2.1. Interest rate
In 2009 the principal monetary policy instrument was the short-term interest rate.
The Monetary Policy Council set the NBP's official interest rates which determined the
remuneration of monetary policy instruments.
11 Liquidity surplus of the banking sector is the surplus of funds retained by the banking sector above the average level
of banksΣ current accounts, determined by the value of the required reserve in the periods when it is maintained.
Liquidity surplus is measured by the balance of main operations (NBP bills issues), fine-tuning operations (repo
operations), foreign exchange swaps and standing facilities (standing deposit facility and lombard credit).
2009
Annual Report 2009
Monetary policy
The main interest rate of the NBP was the reference rate. Changes in the NBP's reference
rate set the direction of the pursued monetary policy. This rate determined the remuneration of
main open market operations, influencing, at the same time, the level of short-term interest rates
on the unsecured interbank deposit market.
The deposit rate and the lombard rate of the NBP determined the corridor for overnight
interest rates fluctuations in the interbank market. The rediscount rate indirectly determined the
interest on the required reserve holdings.
In 2009 the Council changed the key NBP rates on four occasions. The changes took place
in the first half of the year. As a result, the reference, lombard, deposit and rediscount rates at the
end of 2009 reached the level which was 150 basis points lower than at the end of 2008. The
corridor for overnight interest rate fluctuations on the interbank market remained unchanged at
+/–1.5 percentage points around the reference rate.
Moreover, at its meeting held on 23 December 2009, the Council took a decision to
introduce on 1 January 2010 the rediscount rate determining the interest rate on bill discount
credit offered by the NBP.
Table 2
Decisions of the Monetary Policy Council regarding changes in official interest rates in 2009
* Decisions came into force on the followig business day.
Source: NBP data.
41
Decision
date*
Decision
Cutting the reference rate from 5.00% to 4.25%
Cutting the lombard rate from 6.50% to 5.75%
Cutting the rediscount rate from 5.25% to 4.50%
Cutting the deposit rate from 3.50% to 2.75%
Cutting the reference rate from 4.25% to 4.00%
Cutting the lombard rate from 5.75% to 5.50%
Cutting the rediscount rate from 4.50% to 4.25%
Cutting the deposit rate from 2.75% to 2.50%
Cutting the reference rate from 4.00% to 3.75%
Cutting the lombard rate from 5.50% to 5.25%
Cutting the rediscount rate from 4.25% to 4.00%
Cutting the deposit rate from 2.50% to 2.25%
Cutting the reference rate from 3.75% to 3.50%
Cutting the lombard rate from 5.25% to 5.00%
Cutting the rediscount rate from 4.00% to 3.75%
Cutting the deposit rate from 2.25% to 2.00%
27 January
2009
25 February
2009
25 March
2009
24 June
2009
2009
42
Monetary policy
N a t i o n a l B a n k o f P o l a n d
In accordance with the Monetary Policy Guidelines, in 2009 the NBP strived, through open
market operations, especially main ones, to impact the liquidity conditions in the banking sector in
such a way so as to enable the POLONIA rate12 to run close to the NBP reference rate.13
As compared to the previous years, the effectiveness of the NBP's influence on liquidity
conditions in 2009 was limited. This resulted mainly from banks' less active (as compared to the
period before the financial crisis) participation in tenders for main open market operations, which
was reflected in the so-called underbidding.14
The lower activity of banks participating in tenders for main operations was connected with
their intention to maintain current liquidity surpluses. The change in preferences as regards
management of their own liquidity positions resulted mainly from prudential considerations. After
the bankruptcy of the Lehman Brothers investment bank the crisis in the global financial markets
intensified and banks drastically reduced their mutual limits for transactions concluded on the
unsecured interbank deposit markets. While managing their own liquidity position, they had to
take into account a higher risk of difficulties in satisfying their current liquidity needs on the
interbank market. This situation resulted in a strong shift in banks' preferences towards
management of their own liquidity positions based on overnight operations. As a result, long-term
operations (both in the market as well as at the central bank) were limited.15
During the required reserve maintenance periods, the surplus liquidity not absorbed in the
form of NBP’s main operations, was maintained by banks with the use of two instruments offered
by the NBP. At the beginning of required reserve maintenance periods, banks strived to hold more
funds on current accounts at the central bank (above the level of reserve requirement). While
holding more funds on current accounts banks could comply, at an earlier stage, with the reserve
requirement. This phenomenon, called frontloading, was characteristic in the discussed period of
monetary policy operational frameworks of many central banks using the averaged required
reserve framework. The averaged reserve requirement and the absence of remuneration of funds
held with the NBP above the level of reserve requirement, encouraged banks, at the end of the
maintenance periods, to place the accumulated excess funds with the central bank using standing
deposit facility. This instrument made it possible to maintain similar flexibility in the management
of the accumulated liquidity surplus as in the case of frontloading. At the same time, it allowed to
earn income on the accumulated funds (1.5 percentage points below the yield offered by the
central bank through the issuance of NBP bills).
The underbidding in tenders for main operations, resulting from banks' preferences to
manage their liquidity on an overnight basis, led to the situation in which in the required reserve
maintenance periods, banks generally held current liquidity surpluses. As a result, they deposited
excess funds for the shortest possible period in the interbank market at yields lower than the NBP
reference rate and made an overnight deposit with the NBP, bearing interest rate at the level of
the NBP deposit rate. Thus, the POLONIA rate was in the majority of cases below the NBP reference
rate (see Figure 4).
Similar trends in 2010 were observed in the interbank markets of the euro area, the United
Kingdom and countries with liquidity conditions in the banking sector similar to those existing in
Poland (e.g. Hungary).
12 POLONIA (Polish Overnight Index Average) – average overnight rate weighted with the value of transactions on the
unsecured interbank deposit market. The NBP publishes the levels of this rate on the Reuters information site (NBPS)
every day at 5.00 p.m.
13 Monetary Policy Guidelines for 2009, p. 15
14 Situation in which at the tender for a monetary policy operation the banks’ total bid is lower than the supply offered
by the central bank.
15 This was reflected in the observed considerable decline in transactions volume and the shortening of maturity of
unsecured deposits on the interbank market.
2009
Annual Report 2009
Monetary policy
Figure 4
The NBP interest rates and POLONIA rate in 2009
Source: NBP data.
As a result of all the factors described above the average deviation16 of POLONIA rate from
the NBP reference rate in 2009 was 89 basis points (as compared with 32 basis points in 2008).
2.4.2.2. Open market operations
As indicated above in 2009 the main open market operations were the principal instrument
of influencing the level of market interest rates. Additionally, the NBP conducted, on a regular
basis, fine-tuning operations aimed at providing the banking sector with longer-term liquidity (repo
transactions) and made use of a structural operation involving buying back of NBP bonds before
maturity.
The main open market operations were conducted on a regular basis, once a week, in the
form of issuance of NBP bills with a 7-day maturity. In 2009 the average level of issuance of NBP
bills amounted to PLN 31,873 million and was higher than the average level in 2008 by PLN 20,343
million. The increasing level of NBP bills issue in 2009 was the result of rising liquidity surplus in
the domestic banking sector. As mentioned in point 2.4.1, the factor which contributed to the
largest extent to a rise in liquidity surplus was the NBP's purchase of foreign currency. Regular
conducting of repo operations by the NBP providing liquidity to the banking sector was also of
considerable importance for the level of NBP bills issue. Until 19 February 2009, main operations
were performed by the NBP without announcing the volume of bills supply which was largely
caused by the fact that banks' preferences as regards liquidity in the situation of intensifying
financial crisis differed considerably from those in a normal situation and the ensuing difficulty for
the NBP to set the intended liquidity conditions in the banking sector. In this period the NBP
accepted each time the total demand received from banks in the tender. With the situation in the
domestic interbank market improving gradually, the supply of money bills started to be published
again since 20 February 2009. This meant return to the active liquidity management by the NBP.
Under fine-tuning operations, in line with the tasks outlined in the Confidence Package
anounced in October 2008, in 2009 the NBP continued repo transactions providing liquidity to the
43
16 Average deviation of POLONIA rate was calculated according to the uniform base of 365 days in the year.
POLONIA
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
per cent
I II III IV V VI VII VIII IX X XI XII
NBP reference rate NBP lombard rate NBP deposit rate
2009
44
Monetary policy
N a t i o n a l B a n k o f P o l a n d
banking sector for longer periods. Those operations were collateralised with securities accepted by
the NBP (a detailed list of eligible securities is published on the website of the central bank).
In order to increase the potential liquidity supply made available to banks, in 2009 the list of
eligible assets accepted for repo operations, was extended to include the following securities:
– debt securities in foreign currency (debt securities in euro issued by the government of the
Republic of Poland were added to the list),
– other debt as well as securities issued by the NBP deposited with the National Depository
for Securities SA (KDPW SA) other than Treasury securities (the list includes: utility bonds,
bonds of the European Investment Bank, bonds of BGK issued for the National Road Fund,
mortgage bonds).
Figure 5
Average monthly balance of basic open market operations 1995–2009
Source: NBP data.
In the period January – April 2009, the NBP conducted repo operations once a month (on
the second Tuesday of the month), with a 3-month maturity. In May, operations with a 6-month
maturity were additionally introduced and carried out on a regular basis, once a month (on the
third Tuesday of the month). In the case of both types of operations, the central bank did not
announce the supply, fully allotting the total demand received from banks, unless the rate offered
by banks was not lower than the minimum rate published by the NBP. The policy of full allotment
of bank bids, in accordance with one of the objectives of the Confidence Package, offered banks
the opportunity to be provided with zloty liquidity at the NBP for periods longer than 1 day in
a situation of tensions persisting in the domestic financial markets. The average level of repo
operations in 2009 amounted to PLN 11,456 million and was higher by 437% as compared to
2008 when its value reached PLN 2,135 million. Yet, it should be remembered that these
operations were introduced in 2008 Q4.
In 2009, the NBP carried out also a structural operation involving the buying back of NBP
bonds before maturity. As a result, the banking sector was provided with liquid funds of PLN 7,816
million. The decision of the NBP's Management Board to buy back 10-year bonds before maturity
was aimed at improving the liquidity of the banking sector in the situation of lack of confidence in
the interbank market.
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
NBP bills
0
10 000
20 000
30 000
40 000
50 000
PLN million
2009
Annual Report 2009
Monetary policy
2.4.2.3. Reserve requirement
In 2009 the requirement to maintain a specific amount of reserves on accounts with the NBP
applied to banks, branches of credit institutions and branches of foreign banks operating in
Poland. Required reserves were maintained in the averaged system. Banks were obliged to hold
the average balance of funds on accounts with the NBP during the maintenance period at a level
not lower than the amount of the reserve requirement.
Required reserves were calculated on the basis of banks’ collected deposits and funds
received from the sale of securities. Excluded from the reserve calculation base were funds received
from another domestic bank, acquired from abroad for the period of minimum 2 years and
deposited in credit and savings accounts of building societies and in individual pension funds.
Required reserves were calculated and maintained in the Polish zloty.
On 30 June 2009, the Council reduced the ratio of reserve requirement from 3.5% to 3.0%
(for funds acquired from the sale of repo securities the rate did not change in 2009 and amounted
to 0%). The reduction of the reserve requirement ratio aimed in particular at supporting bank
lending.
Banks reduced the amount of calculated reserve requirement by the equivalent of EUR 500
thousand. The holdings of required reserves held on NBP accounts were remunerated at 0.9 of the
NBP rediscount rate. The average interest on reserve requirement funds in 2009 amounted to
3.6%.
The decision by the MPC to reduce the reserve requirement ratio by 0.5 percentage points
led to the reduction of the level of reserve requirement starting from the second half of 2009.
The required reserves level in July decreased as compared to June 2009 by PLN 3.319 million,
i.e. by 14.6%, while the deposits constituting the reserve base remained approximately the same.
The amount of required reserves was PLN 20,148 million on 31 December 2009 showing
a decrease of PLN 941 million (4.5%) as compared to 31 December 2008. The deposits
constituting the reserve base and to which the positive ratio was applied increased by 11.9%
in that period. If the reduction of the required reserves had not taken place in June 2009
the amount of required reserves on 31 December 2009 would have stood at PLN 23,673 million
and would have been higher than the level of required reserves at the end of 2008 by
PLN 2,584 million, i.e. by 12.3%.
In all the required reserves maintenance periods a surplus persisted in the average balance
of funds in relation to the required level of reserves (on average PLN 27 million, i.e. 0.13%). In
particular periods this surplus ranged from PLN 18 million in July (0.09%) to PLN 39 million in
January (0.18%). The reduction of the difference between the required and maintained reserves
in particular reserve maintenance periods was supported by:
– remuneration of reserve holdings only to the amount of the reserve requirement,
– banks’ use of instruments facilitating asset management on the NBP accounts (intraday
credit, standing deposit facility and lombard credit).
Injection of additional liquidity to banks by the NBP (buy-back of NBP bonds before maturity
and reduction of the required reserve ratio) supported banks in asset management, and facilitated
maintaining the reserve holdings at the level required in every reserves maintenance period, which
materialised for the first time since the introduction of the reserve requirement instrument in 1989.
45
2009
46
Monetary policy
N a t i o n a l B a n k o f P o l a n d
Figure 6
Changes of required reserves level and deviations from reserve requirement in 2009
Source: NBP data.
2.4.2.4. Standing facilities
Standing facilities served as instruments stabilising the level of liquidity in the interbank
market and the scale of overnight rate fluctuations. These operations were conducted at the
initiative of commercial banks with the purpose of providing short-term liquidity to the banking
sector or allowing banks to deposit their excess holdings for overnight periods with the NBP. In
such a way the central bank was able to limit the fluctuations of the shortest market rates on the
interbank market, particularly the overnight rate. The lombard rate determining the maximum cost
of funding with the NBP set a ceiling on fluctuations of interbank rates, while the deposit rate
constituted the floor.
In 2009 banks made use of lombard credit collateralised with securities in order to
supplement their current liquidity on current accounts with the NBP. The total amount of credit
used in 2009 was PLN 5.0 billion, compared to PLN 5.2 billion in 2008, while the average daily use
of lombard credit was PLN 13.8 million as compared to PLN 14.3 million in 2008.
In order to increase the liquidity pool available to commercial banks the NBP widened the list
of eligible assets (collateral) thus allowing banks to use, starting from 2 July 2009, lombard credit
collateralised with debt securities denominated in foreign currencies. A detailed list of these
securities is published on the website of the NBP.
In 2009, banks’ total use of deposit facility offered by the NBP amounted to PLN 898.1 billion
(calculated as the sum total on the days of its use), which was an amount that was 72.7% higher
than the deposits placed in 2008. The total value of overnight deposits placed by banks ranged
between PLN 10 million and PLN 23.5 billion. The average daily level of overnight deposits
amounted to PLN 2,460.6 million as compared to PLN 1,421.7 million in 2008. The highest
amounts were deposited by banks in the last days of the required reserve maintenance periods.
39
27
33
20
30 20
18
29 21 30 37
23
19 000
19 200
19 400
19 600
19 800
20 000
20 200
20 400
20 600
20 800
21 000
21 200
21 400
21 600
21 800
22 000
22 200
22 400
22 600
22 800
23 000
31.12.08
01.02.09
02.02.09
01.03.09
02.03.09
30.03.09
31.03.09
29.04.09
30.04.09
31.05.09
01.06.09
29.06.09
30.06.09
30.07.09
31.07.09
30.08.09
31.08.09
29.09.09
30.09.09
01.11.09
02.11.09
29.11.09
30.11.09
30.12.09
Required reserve Deviations from required reserve
Maintenance periods
PLN million
2009
Annual Report 2009
Monetary policy
2.4.2.5. Foreign exchange swaps
In October 2008, the MPC modified the set of monetary policy instruments complementing
it with the foreign exchange swap. By means of foreign exchange swaps the NBP could purchase
(or sell) the zloty with foreign currencies in the spot market while simultaneously reselling (or
repurchasing) it on a forward transaction basis on a specified date.
In 2009, the NBP offered foreign exchange swaps in three currency pairs – USD/PLN,
EUR/PLN and CHF/PLN. The operations were offered on a regular basis:
– weekly, on Monday, in all the above-mentioned currency pairs, in principle with a maturity
of 7 days,
– monthly, on the first Wednesday of the month, in USD/PLN and EUR/PLN currency pairs,
with a maturity of 28 days.
Banks showed the greatest interest in the swaps conducted in the CHF/PLN currency pair.
The demand for this kind of operations continued till October 2009 (the last operation for which
banks reported demand was carried out on 26 October 2009). As regards the other two currency
pairs, banks did not report demand for this instrument starting from March 2009.
The highest use of foreign exchange swaps was recorded in 2009 Q1 (at the end of March
the equivalent value of currencies that banks acquired in this way approached PLN 4 billion). In two
subsequent quarters the amount of injections stabilised at the level of approx. PLN 500 million
(equivalent value).
In average annual terms the operations in the form of foreign exchange swaps reduced the
liquidity of the banking sector by PLN 1,074 million, as compared to a reduction of PLN 162 million
in 2008.
2.4.2.6. Other operations
Intraday credit facility serves as an instrument facilitating liquidity management in the
banking sector during the business day, while at the same time ensuring the interbank settlement
liquidity in the NBP. It is a non-interest bearing credit collateralised with Treasury securities and
NBP-issued securities that is incurred and repaid during the same business day. In 2009 the daily
injection of liquidity to banks with the use of this instrument ranged between PLN 12.4 billion and
PLN 29.5 billion. The use of intraday credit facility rose in 2009 by 7.5% in relation to 2008, i.e.
by PLN 272.6 billion, which was a lower growth rate than in the previous period (an increase of
17.1% in 2008).
The level of intraday credit facility use remains primarily closely correlated with the liquidity
management policy followed in commercial banks. In view of the fact that this instrument is a non-
-interest bearing facility, banks use it also as a buffer reducing the risk of a lack of liquidity to meet
their obligations in interbank settlements.
Intraday credit in the euro serves to ensure settlement liquidity in the SORBNET–EURO
system. It is secured with Treasury bonds that have been previously accepted by the ECB.
It is incurred and repaid during the same business day. In 2009 the daily injection of euro-
-denominated operational liquidity to banks ranged between EUR 0.9 million and
EUR 3.4 million. The use of the intraday credit in the euro rose by 62.4% in relation to 2008.
47
2009
48
Monetary policy
N a t i o n a l B a n k o f P o l a n d
2.4.2.7. Foreign exchange interventions
In 2009 the Monetary Policy Council did not find sufficient grounds for conducting foreign
exchange interventions.
Annual Report 2009
3
FINANCIAL SYSTEM17
17 Tasks in this field are fulfilled pursuant to Article 3 section 2 para. 6 and 6a of the Act on the NBP.
2009
50
Financial system
N a t i o n a l B a n k o f P o l a n d
The National Bank of Poland promotes the stability and development of the national
financial system as one its core objectives. The year 2009 marked the beginning of a new legal
framework for PolandΣs central bank. On 13 December 2008, the Act on the Financial Stability
Committee18 entered into force, amending the Act on the NBP. As a result, activities undertaken
to support the stability of the national financial system were explicitly included in the NBP tasks.19
Whereby the Management Board of the NBP is committed to analyse the stability of the national
financial system.20 In practice, the NBP has already pursued the above tasks, in view that the
necessary prerequisites must in place for the development of the banking system. The stability of
the financial system is essential to implement the basic goal of the NBP, i.e. to maintain a stable
level of prices. Inclusion of this task in the Act on the NBP reinforced the important role of the
central bank in activities supporting the stability of the financial system.
The change in the legal framework for the activities of the NBP coincided with the rise new
challenges posed by the world’s gravest financial and economic crisis in the last several decades.
In September 2008, the crisis intensified and its adverse effect spread onto the financial market in
Poland. Operating conditions changed dramatically, both for Polish financial institutions and the
National Bank of Poland. In consequence of the crisis, i.a., confidence declined among interbank
market participants. Hence, most banks reduced the limits on transactions with their
counterparties in the interbank market, limited their exposure to overnight loans or ceased to carry
out such transactions.
During the first stage of reducing the impact of global crisis on the Polish financial system,
the NBP primarily sought to mitigate the effects of tensions in the interbank market and,
subsequently, to restore its normal functioning through provision of liquidity in PLN and foreign
currencies. In the face of difficult conditions in the interbank market, on 13 October 2008, the NBP
announced the so-called Confidence Package. The instruments introduced under the Confidence
Package were used by the NBP in operations with banks throughout the year 2009. The range of
instrument was gradually refined to comply with the needs of banks, which in effect helped
stabilise the situation in the interbank market. During the second stage, the effects of the crisis in
global markets started to spread onto the real sphere of Polish economy. Whereas the volume of
outstanding liabilities decreased, the NBP took actions aimed at easing of the restrictions regarding
the availability of loans for economic entities; in particular, it initiated the Pact for the Growth of
Lending in Poland.
3.1. NBP and the Financial Stability Committee
In 2009, while pursuing the national financial system stability, the NBP continued to
cooperate with the Ministry of Finance and the Polish Financial Supervision Authority under the
Financial Stability Committee. It was the first full year that the co-operation was conducted in
accordance with the provisions of the Act on the Financial Stability Committee. Pursuant to this
Act, the tasks of the Committee shall include the following:
– to assess the conditions of the domestic financial system and the conditions in
international markets;
– to ensure appropriate information sharing between the members of the Committee on
important events and tendencies which may pose a threat to the stability of the national
financial system;
18 Journal of Laws No 209/2008, item 1317.
19 Journal of Laws No 209/2008, item 1317, Article 3 para.1.
20 Journal of Laws No 209/2008, item 1317, Article 14 para. 2.
2009
Annual Report 2009
Financial system
– to coordinate the activities of the members of the Committee should a direct threat to the
stability of the national financial system occur.
Meetings of the Committee shall be held at least once every six months. In 2009, due to
intensification of the crisis in global financial markets, the Committee held 7 meetings. The NBP
actively participated in all meetings, initiating some of them in order to discuss material issues; it
also prepared numerous current analyses and studies. The Financial Stability Committee shared
information on and assessments of events with a particular impact on the stability of the financial
system.
3.2. Analyses and research for the needs of the financial system
As part of its analytical and research activity, the NBP prepared numerous studies and
analyses regarding the stability and development of the financial system in Poland. The results of
these analyses were also presented at the forum of the Financial Stability Committee.
The NBP publishes the results of the works in cyclical reports. The following publications
appeared in 2009:
• Financial Stability Report (in June and December). The reports placed a principal emphasis
on the risk incurred by banks and their ability to absorb losses resulting from
disadvantageous operating conditions. They also presented the results of stress tests
carried out by the NBP. Moreover, the publications examined the key sectors of non-
-banking financial institutions: insurance companies, pension fund management
companies and investment fund management companies, as well as their relationships
with the banking sector in Poland.
• The report Financial System Development in Poland 2008 (December). The publication
comprehensively describes trends and barriers to the development of financial institutions
and markets in Poland amidst the intensifying global financial crisis in 2008, and outlines
how financial systems evolved in selected EU Member States. The relationships were
examined between changes in the national financial system and the structure of financial
assets of households and external sources of financing of enterprises. In addition, changes
to the infrastructure and amendments to legislative acts concerning the financial system
were presented, as well as initiatives aimed at integration of the EU financial market.
Moreover, in 2009 the NBP conducted:
• Research on the microstructure of the zloty spot market. The research involved the analysis
of intraday seasonality of activities in the zloty market, the response of the zloty exchange
rates to the value of the so-called order flow, depending on time of the day, liquidity and
market depth and the effect of the publication of macroeconomic releases concerning the
zloty exchange rates. The key conclusions drawn from the above research were published
in the report Financial System Development in Poland 2008.
• Quarterly research on credit market conditions (senior loan officers opinion surveys).
The primary aim of the surveys was to determine the direction of changes in lending policy,
i.e. changes in the standards and terms of granting loans, as well as changes in demand
for loans in the Polish banking system. In 2009, the NBP, in order to broaden the
representation of the investigated sample group of banks, extended the scope of the
survey by supplementing the pool with additional 6 commercial banks which had not
participated in it earlier. The survey results are published as cyclical reports.
51
2009
52
Financial system
N a t i o n a l B a n k o f P o l a n d
• Analyses concerning financial stability architecture. Adequate organisation of financial
safety net and close collaboration among the institutions involved in it are vital to maintain
the stability of the financial system. Analysing the experience of other countries in this
respect may contribute to the development of more efficient solutions for the organisation
of financial safety nets in Poland.
In 2009, the NBP published a report Institutional Framework of Financial Supervision
Authorities in EU Member States. The chief directions of changes in institutional oversight of the
financial market in the European Union were addressed, with particular emphasis on the role of
central banks in this process. The paper provided basic information concerning the taxonomy of
financial supervision organisation models, as well as practical aspects of organising supervision
and oversight over financial systems in individual EU Member States. The latest initiatives were
also presented for changing the institutional position of financial supervision. As indicated in the
analyses, the global financial crisis considerably strengthened the tendency to increase the role
of central banks in supervision over banking and financial systems. Particularly noteworthy cases
concern the countries in which the central bank is likely to regain its supervisory competence due
to the experience of the recent crisis. Countries where the central bank was delegated or
reassigned supervisory functions included Ireland, Estonia, Czech Republic, Slovakia, Austria, the
Netherlands and Finland. France, Germany and the UK are still considering making such
a decision.
3.3. Preventing disturbances in the interbank market
3.3.1. Pact for the Growth of Lending in Poland
In April 2009, in response to declining loan supply, particularly pronounced in the segment
of economic entities, the NBP launched the Pact for the Growth of Lending in Poland. The Pact
sought to provide a platform for multilateral co-operation in order to increase the availability of
credits for economic entities. As a part of the work on the Pact, the NBP held a series of meetings
with banks, involving the participation of the Ministry of Finance and the Polish Financial
Supervision Authority representatives. During these meetings, the chief barriers to the increase in
lending activity were identified. This, in turn, resulted in a list of postulates from the banks,
addressed to individual financial safety net institutions in Poland. The postulates, collected by the
NBP, were submitted to the Polish Financial Supervision Authority, the Ministry of Finance as well
as the Prime Minister. The banks were expected to retain the profit of 2008 and allocate it to
increase their own funds.
3.3.2. NBP response to the postulates from the banks
In response to the banks’ postulates, the NBP undertook numerous activities which de facto
made medium-term financing for banks possible:21
– launched operations providing the banking sector with longer-term liquidity – up to
6 months, as well as enabled a rollover, i.e. renewal of the credit with the same collateral;
– expanded the list of eligible repo operation collaterals;
21 For more information regarding monetary policy instruments, see Chapter 2.4.
2009
Annual Report 2009
Financial system
– reduced the rate of required minimum reserves;
– redeemed the NBP bonds before maturity (under the Confidence Package).
3.3.3. Discount credit facility
At the end of 2009, the NBP introduced a discount credit – a new instrument, designed to
facilitate access of banks to refinancing of new lending. Discount credit facility is intended to
refinance newly extended loans for those enterprises whose growth was hampered the most due
to the crisis.
In 2009, in order to introduce the aforementioned instrument, the NBP made numerous
legal adjustments which fell within the competence of the NBP and the MPC. The most notable of
these adjustments are:
– to take the new instrument into account in the Monetary Policy Guidelines for 2010;
– to determine of a new rate – bill discount rate – by way of resolution No 15/2009 of the
MPC of 23 December 2009.
3.4. International co-operation for financial stability
The NBP takes active part in international co-operation for the development and stability of
the financial system.
3.4.1. Poland’s membership in the European Union
As a member of the European System of Central Banks (ESCB), the NBP participated in the
works of committees operating at the ESCB. The issues of stability of the financial system come
within the scope of competence of the Banking Supervision Committee (BSC). The BSC examines
problems related to stability and development of the European financial system – the banking
system in particular – and promotes the development of institutional solutions for sustaining the
stability of the system. In 2009, the NBP representatives participated in the activities of working
groups and task forces established under the Banking Supervision Committee.
The NBP representative is also a member of the Committee of European Banking Supervisors
(CEBS). The Committee is an independent advisory body of the European Commission, competent
for the issues of regulations and banking supervision in the EU. It pursues uniformity of
interpretation of Community directives and approximation of supervisory practices in the
Committee Member States.
53
2009
54
Financial system
N a t i o n a l B a n k o f P o l a n d
Highlights in 2009
The NBP:
• Actively participated in the work of the Financial Stability Committee.
• Launched the Pact for the Growth of Lending in Poland in order to ease the restrictions
on the availability of credits for economic entities.
• Commenced works on the introduction of discount credit facility – a new instrument,
designed to facilitate access of banks to refinancing of new lending.
Annual Report 2009
4
THE ISSUE OF CURRENCY22
22 Tasks in this field are fulfilled primarily pursuant to Article 4 and Articles 31–37 of the Act on the NBP.
2009
56
The issue of currency
N a t i o n a l B a n k o f P o l a n d
Pursuant to the Act on the NBP, the central bank has the exclusive right to issue currency of
the Republic of Poland. The NBP contributed to the maintenance of monetary stability by ensuring
security, liquidity, and quality of cash operations.
4.1. Currency in circulation
The value of currency in circulation (including bank vault cash) as at 31 December 2009
amounted to PLN 100,344.8 million. This represents a decrease in the value of currency by
PLN 1,789.9 million, i.e. by 1.75% compared to the figure as at 31 December 2008.
In 2009, manufacturers of legal tender delivered 502,080,000 pieces of notes and
1,235,699,500 pieces of coins to the NBP (as compared to 305,080,000 pieces of notes and
847,563,400 pieces of coins in 2008).
The number of notes and coins ordered results from the principles applicable in the NBP, as
specified in the Policy on the Issue of General Circulation Notes and Coins. The needs for 2009
were determined in accordance with the currency circulation forecast prepared in mid-2008, which
predicted a sustained increase in currency in circulation in 2009. Moreover, the supplied notes and
coins also supplemented the holdings of the NBP up to the level specified in the aforementioned
document.
As at 31 December 2009, notes accounted for 97.0% of all currency in circulation by value,
whilst coins represented 3.0% (in 2008 – 97.31% and 2.69%, respectively).
In terms of volume, notes accounted for 11.55% of all currency in circulation, whilst coins
represented 88.45% (in 2008 – 12.11% and 87.89%, respectively).
In terms of value, 100 zloty and 200 zloty notes accounted for the largest share of all notes
in circulation at the end of 2009, totalling 65.70% and 22.71% respectively (65.27% and 22.73%
in 2008). In the case of coins, 5 zloty and 2 zloty coins had the largest share of all coins in
circulation, accounting for 32.61% and 28.21%, respectively (31.02% and 28.47% in 2008).
In terms of volume, 100 zloty and 50 zloty notes had the largest share in the notes in
circulation at the end of 2009, amounting to 57.28% and 15.40%, respectively (in 2008, their
respective shares stood at 56.85% and 16.16%). In the case of coins, 1 grosz and 2 grosz
denominated coins prevailed, with their respective shares at 36.15% (36.45% in 2008), and
17.80% (18.05% in 2008).
4.2. Issue of collector coins
Each year, the NBP issues collector coins and notes, commemorating national or
international events, important historical anniversaries and famous Poles.
In 2009, 149,500 pieces of gold collector coins and 1,542 thousand pieces of silver collector
coins were issued. The design elements covered 15 topics (as compared to 97,400 pieces of gold
collector coins and 1,610 thousand pieces of silver collector coins in 2008).
In 2009, 24 types of collector coins were issued, including:
– 7 gold coins with face values of 200, 100, 37 and 25 zloty;
2009
Annual Report 2009
The issue of currency
– 17 silver coins with face values of 20 and 10 zloty.
In addition, standard collector coins, the NBP23 issued the following gold and silver coins in
2009:
• gold coin with face value of 25 zloty (”Polish Road to Freedom – General Elections of
4 June 1989”);
• gold coin with face value of 37 zloty (”25th Anniversary of the Death of Father Jerzy
Popiełuszko”);
• silver coin with an integral hologram (”90th Anniversary of the Establishment of the
Supreme Chamber of Control”);
• silver pad-printed coins (”Polish Road to Freedom – General Elections of 4 June 1989” and
”100th Anniversary of the Establishment of the Voluntary Tatra Mountains Rescue
Service”);
• square-shaped silver coin (”History of Polish Popular Music – Czesław Niemen”);
• gold-plated silver coin (”65th Anniversary of the Warsaw Uprising: Warsaw poets:
K.K. Baczyński and T. Gajcy”);
• silver coin with a red zirconia (”25th Anniversary of the Death of Jerzy Popiełuszko
death”);
• oxidised silver coin (”65th Anniversary of the Liquidation of the Lodz Ghetto”).
The NBP continued to issue occasional general circulation coins with a face value of 2 zloty,
struck in the Nordic Gold alloy, which accompanied each issue of collector coins. In September
2009, the NBP commenced the issue of Nordic Gold alloy coins of a new series: ”Cities in Poland”.
Coins introduced as a part of this series in 2009 commemorated three towns: Cz´stochowa,
J´drzejow and Trzebnica. In 2009, 18 types of general circulation coins struck in the Nordic Gold
alloy were issued in total.
In 2009, a collector banknote commemorating the 200th anniversary of Juliusz Słowacki’s
birth was issued with a face value of 20 zloty; volume: 80,000 pieces. On this banknote diverse
security features were applied, including colour shifting ink, microlettering, watermarks, security
thread and security elements fluorescent under UV light.
Moreover, in 2009, 8 thousand pieces of gold bullion coins were issued.
4.2.1. Prizes and awards
In 2009, collector coins issued by the NBP received awards at international competitions.
The gold coin with face value of 200 zloty: ”65th Anniversary of the Warsaw Ghetto
Uprising” won the first prize at a prestigious, international Coin of The Year (COTY) competition,
organised by Krause Publications, in the category of ”The Most Artistic Coin of 2007”. Due to
logistic factors (worldwide range and a large number of coins entered for the competition), the
results are announced 2 years after the year of issue.
57
23 Standard NBP collector coins are gold coins with face values of 100 zloty (weight: 8.0 g) and 200 zloty (weight:
15.50 g), as well as silver coins with face values of 10 zloty (weight: 14.14 g) and 20 zloty (weight: 28.28 g).
2009
58
The issue of currency
N a t i o n a l B a n k o f P o l a n d
Further three Polish collector coins received awards at the international COIN
CONSTELLATION 2009 competition, organised in Saint Petersburg by Watermark Company:
• in the category of ”Successful Artistic Solution” – a silver coin with face value of 10 zloty,
”The Siberian Exiles” – 1st prize;
• in the category of ”Original Technology” – a silver coin with face value of 10 zloty, ”400th
Anniversary of Polish Settlement in North America” – 1st prize;
• in the category of ”Silver Coin of the Year” – a silver coin with face value of 10 zloty,
”XXIXth Olympic Games – Beijing 2008” (with a sphere) – 3rd prize.
4.2.2. New principles of sale of coins
In 2009, the NBP developed and introduced new principles of sale and distribution of
collector values – via the Internet auction through a Kolekcjoner (The Collector) sale system.
The new system has introduced a transparent mechanism for allocating collector items,
in accordance with the arm’s length principle. It eliminated price preference for companies
(liquidation of discounts), introducing clear principles of allocating collector values. The system
allows for collector items to be purchased by different entities, including companies and persons
from abroad. Persons without Internet access may request assistance from employees of the NBP
regional branches, who will register their accounts in the Kolekcjoner service on their behalf and,
subsequently, accept and place orders at auctions.
4.3. Withdrawal of unfit notes and coins
In 2009, 235.5 million pieces of notes and coins were withdrawn (as compared to 308.6
million pieces in 2008) due to unfitness or loss of counterfeit protection features of appropriate
quality.
4.4. Counterfeit Polish currency
The number of counterfeit Polish currency notes and coins decreased by 14.02%, as
compared to 2008. Table 3 presents the number and breakdown of counterfeit Polish notes and
coins reported in 2009 in comparison with 2008.
Table 3
The number and breakdown of counterfeit Polish notes and coins
Counterfeit notes and coins
Number
(pieces)
Breakdown
(in %)
Number
(pieces)
Breakdown
(in %)
Increase/
decrease
(in %)
2008 2009
Banknotes issued in 1994,
the “Polish Monarchs” series
Banknotes issued previously,
the “Great Poles” series
Coins of current issue
16 525
10
12 999
49.29
0.03
38.77
19 315
29
8 226
67.00
0.10
28.54
+16.88
+190.00
-36.72
2009
Annual Report 2009
The issue of currency
Source: NBP data.
Authentic, general circulation coins with face values of 10 and 20 zloty withdrawn from the
circulation in 1994, which had been reshaped and used in coin-operated vending machines, have
been numbered among the counterfeits.
4.5. Supply of notes and coins to banks
In 2009, commercial banks purchased Polish currency notes and coins from the NBP for the
amount of PLN 163.2 billion (PLN 171.5 billion in 2008). More specifically, of which PLN 91.7
billion, i.e. 56.2% of the total value, accounted for purchase transactions of notes and coins under
agreements on storing and purchasing notes and coins deposited at the NBP24 (61.2% in 2008),
whereas PLN 71.4 billion, i.e. 43.8% of the total value, accounted for transactions of purchase
concluded on the basis of agreements on the execution procedure for the agreements of sale-
-purchase of Polish currency notes and coins25 (38.0% in 2008).
4.6. Exchange of notes and coins which ceased to be legal
tender
The NBP and domestic banks providing cash services continued the exchange of notes and
coins issued prior to the 1 January 1995, i.e. prior to the redenomination of the zloty. By the end
of 2009, 99.83% of notes and coins issued before redenomination had been replaced.
4.7. Commission for the Euro Introduction
Commission for the Euro Introduction was appointed on 5 January 2009 by the President of
the NBP. The Chairperson of the Commission is the NBP Management Board Plenipotentiary for
introducing the euro. Main tasks of the Commission include: supporting the Plenipotentiary in
initiating and coordinating the activities related to Poland's accession to the euro area; in
particular, those related to the participation in the ERM II mechanism; participation in the
development of the National Euro Changeover Plan and the introduction of euro banknotes and
coins.
In 2009, two task forces have been appointed within the Commission: task force for the
choice of scenario for the introduction of euro notes and coins in Poland and task force for
preparation of the Strategy for the Participation of the Zloty in the ERM II mechanism.
59
Coins of previous issues,
withdrawn in 1994
Total
3 993
33 527
11.91
100.00
1 257
28 827
4.36
100.00
-68.52
-14.02
24 Pursuant to these agreements, banks keep notes and coins which are the property of the NBP in their vaults, with
the option to redeem them.
25 I.e. agreement regulating the flow of notes and coins to/from banks from/to the NBP.
2009
60 N a t i o n a l B a n k o f P o l a n d
Highlights in 2009
The NBP:
• Issued collector coins – the NBP commemorating national or international events,
important historical anniversaries and famous Poles.
• Issued collector banknote commemorating the 200th anniversary of Juliusz Słowacki’s
birth, with a face value of 20 zloty.
• Issued a new series of coins – ”History of Polish Popular Music”.
• Ensured circulation of notes and coins of all face values amidst a backdrop of high
economic and financial fluctuations.
• Developed and tested a new system of selling collector items through the Internet auction
sale system Kolekcjoner.
Annual Report 2009
5
FOREIGN EXCHANGE
RESERVES MANAGEMENT26
26 Tasks in this field are fulfilled pursuant to, i.a. Article 3 section 2 para. 2 and Article 52 of the Act on the NBP.
2009
62
Foreign exchange reserves management
N a t i o n a l B a n k o f P o l a n d
The NBP acts as a central foreign exchange authority by holding and managing the foreign
exchange reserves, and by carrying out banking operations and taking other measures to ensure
the security of foreign exchange trade and Poland's payment liquidity. Foreign exchange reserves
primarily add to financial credibility and stability of the country. Their amount and composition
should allow to conduct efficient monetary and exchange rate policies.
In the management of foreign exchange reserves, the NBP seeks to maximise the return on
reserves while ensuring optimum security of the invested funds and the requisite liquidity in foreign
currency.
5.1. General principles for managing the foreign exchange
reserves
In October 2007, the Management Board of the NBP adopted the Long-term Foreign
Exchange Reserves Management Strategy of the National Bank of Poland, with the aim to
maximise the return on reserves over the long perspective, along with maintaining financial risk at
accepted level. In the implementation of its strategy, the NBP endeavours to:
– further diversify the FX currency reserves composition and extend the scope of investment
instruments;
– apply the advanced methods of global allocation of assets;
– improve decision-making process;
– develop methods to manage investment risk.
Those objectives are reflected in the resolution of the NBP Management Board, which most
specifically sets forth the principal terms and conditions of managing the foreign exchange
reserves, including but not limited to decision-making process, investment instruments to be used
and principles of establishing the limits and criteria to select the NBP counterparties.
As part of the approved decision-making procedure, the NBP Management Board
determines, on a yearly basis, the Strategic Allocation of Assets, via its decisions regarding:
– currency and investment composition;
– the level of modified duration, which illustrates the sensitivity of investment to changes in
the yields on the instruments (interest rate risk);
– the scope of active investment policy.
The implemented investment strategy is adjusted for medium- and short-term market
expectations in the Tactical Allocation of Assets and Management of Active Portfolio.
2009
Annual Report 2009
Foreign exchange reserves management
5.2. Financial risk management in the foreign exchange reserves
management process
One of the most important elements in the foreign exchange reserves management is the
management of the risk that accompanies investments, in accordance with the system of
investment limits and restrictions accepted by the Management Board of the NBP.
Table 4 presents the main types of financial risk in the foreign exchange reserves
management process and the methods applied by the NBP to mitigate this risk.
Table 4
List of investment limits and restrictions applicable at the NBP in the financial risk management
process
Source: NBP data.
In 2009, limits on credit risk exposure, adopted in the previous year, were retained due to
the escalation of crisis in the global financial sector. The scope of these limits was adjusted to
changes in market conditions. The most important decisions were:
– to reduce the share of deposits in foreign exchange reserves;
– to shorten investment horizon for investment transactions, so as to enable a rapid
response to the changes of financial standing of the counterparty;
– to reduce the limits for some counterparties to investment transactions and suspend co-
-operation with counterparties whose creditworthiness had deteriorated.
Moreover, the scope of analyses of credit risk have been significantly broadened to
incorporate quantitative measures and information reflected in market quotations.
63
Liquidity
riski
Investment in the currency of countries whose financial markets feature the highest liquidity
Reduction in the share of deposit transactions
Security selection criteria
Interest
rate
risk
Maximum level of modified duration of reserves
Optimum level of modified duration of reserves specified in the benchmark
Benchmark volatility ranges of modified duration of currency portfolios
Optimal currency composition of benchmark portfolios
Benchmark volatility ranges of currency composition
Credit risk Reduction in the share of deposit transactions and non-government securities
Counterparty selection criteria and ongoing monitoring of their creditworthiness
Counterparty limits on deposit and foreign exchange transactions
Security selection criteria
Exposure limits for issuers of securities
Collateral in investment transactions with securities repurchase agreement
Risk Mitigation methods
Foreign
exchange
risk
2009
64
Foreign exchange reserves management
N a t i o n a l B a n k o f P o l a n d
The experience gained during the crisis in financial markets fed into works on the
development of counterparty limits system for investment transactions and for issuers of non-
-government securities. The modifications introduced in this process primarily sought to broaden
the spectrum of variables taken into account in point models intended for calculation of limits.
5.3. Level of the official reserve assets27
In 2009, the NBP official reserve assets increased:
– by EUR 11.1 billion to EUR 55.2 billion – when calculated in EUR (25.1%);
– by USD 17.4 billion to USD 79.6 billion – when calculated in USD (28.0%);
– by PLN 42.7 billion to PLN 226.9 billion – when calculated in PLN (23.2%).
Figure 7 presents the balance of official reserve assets in the years 2006–2009.
Figure 7
Official reserve assets in the years 2006–2009
Source: NBP data.
The value of official reserve assets rose in 2009, primarily reflecting positive balance of
external flows, most specifically the inflow of funds from the European Union, returns on
investments, additional SDR allocation by the IMF and increase in the scale of investments involving
sale (repo) and repurchase (reverse-repo) transactions conducted in parallel.
27 According to the definition of the International Monetary Fund (IMF), the official reserve assets include easily
disposable, foreign liquid assets held by the central bank. This category includes monetary gold, special drawing
rights (SDR), IMF reserve position and foreign exchange currency assets, mainly in the form of securities, deposits and
cash.
45 44
55
66 62
141
160
184
227
37
48
80
0
50
100
150
200
250
2006 2007 2008 2009
billion EUR billion USD billion PLN
2009
Annual Report 2009
Foreign exchange reserves management
In 2009, the official reserve assets increased most noticeably in the US dollars. This was
because USD depreciated vis-a-vis other reserve currencies (EUR/USD exchange rate increased by
2.3%, GBP/USD – by 11.4%, AUD/USD – by 30.0% and NOK/USD – by 21.3%). Relatively the
lowest increase in the value of official reserve assets expressed in the zloty resulted from
appreciation of the zloty vis-a-vis main reserve currencies (PLN strengthened by 3.9% as compared
to the US dollars and by 1.6% as compared to the euro).
In 2009, due to the significant increase in the price of gold (approx. 25%), the value of
monetary gold held by the NBP increased:
– by EUR 0.5 billion to EUR 2.5 billion – in euro terms;
– by USD 0.8 billion to USD 3.7 billion – in US dollar terms;
– by PLN 1.9 billion to PLN 10.4 billion – in zloty terms.
5.4. Foreign exchange currency reserves management strategy
The rate of return on investing foreign exchange currency reserves depends on market
conditions – fluctuations of exchange rates and prices of investment instruments. Alongside, the
parameters of the Strategic Allocation of Assets have also a significant impact.
Taking into account the analysis of global macroeconomic outlook conducted at the end of
2008, forecasts of developments in the world financial markets and the results of optimisation
analysis, the NBP Management Board decided to maintain the currency composition applicable in
2008 in the subsequent year. Moreover, the modified duration of the reserves was maintained at
the level similar to the one applicable at the end of 2008 (2.6 as compared to 2.4 – the change
resulted from the adjustments of sectoral structure to investment options in individual markets).
Table 5 presents the currency composition of benchmark in the years 2006–2009.
Table 5
Benchmark currency composition in years 2006–2009 (in %)
Source: NBP data.
In the management of its foreign exchange reserves, the NBP invests in typical instruments
used by other central banks. Government securities constitute the dominant part of foreign
exchange currency reserves. The NBP also invests in non-government securities, including the
instruments issued by international institutions and government agencies. Moreover, a small part
of the reserves is held in deposits at prestigious banks.
65
USD EUR GBP AUD NOK
2006 45
40 40 15 5 0
40 35 15 5 5
40 35 15 5 5
40 15 0 0
2007
2008
2009
`
`
2009
66
Foreign exchange reserves management
N a t i o n a l B a n k o f P o l a n d
The process of diversification of the applied investment instruments, adopted in the Long-
-term Foreign Exchange Reserves Management Strategy, took account of the prevailing market
conditions. In 2009, the spectrum of non-government issues was broadened, although, the share
of instruments from this group was limited due to the sustained increased credit risk.
Figure 8
The share of investment instruments in the NBP foreign exchange currency reserves in the
years 2007–2009 – as at 31 December
Source: NBP data.
5.5. Market environment in 2009
In the first half of 2009, especially during the first quarter of the year, the situation in
financial markets primarily reflected the fears regarding the outlook for the global economy, which
slid down into the most serious recession in years, due to the subprime crisis. Governments and
central banks in this period undertook a series of actions in order to stabilise the situation in
financial markets and stimulate economic growth. The ECB, the Bank of England (BoE), the Reserve
Bank of Australia (RBA) and Norges Bank (NB) continued to reduce the policy rates, as from 2008
– the ECB lowered the refinancing rate by a total of 150 bps to 1%, the BoE lowered the base rate
by 150 bps to the lowest level in history: 0.5%, the RBA lowered the cash target rate by 125 bps
to the lowest level in 45 years: 3%, while the NB lowered the deposit rate by 175 bps to 1.25%.
The Federal Reserve Bank (the FED), in turn, kept the interest rate on the federal funds at the
lowest applicable level since December 2008, i.e. 0–0.25%. In parallel, central banks (the FED,
the BoE and the ECB) undertook non-standard activities, known as ”quantitative easing”,
designed, i.a. to lower market interest rates by purchasing securities.
The second half of the year saw more and more symptoms of improvement in the situation
of the world’s major economies, which indicated that the undertaken countercyclical actions had
been effective. As a consequence, a number of central banks abandoned the expansive monetary
policy applied thus far. The RBA and NB were among the first central banks to commence the cycle
of monetary policy tightening in October 2009. By the end of the year, the RBA increased the cash
target rate on three occasions – each time by 25 bps – to 3.75%, while NB increased the interest
rate twice – each time by 25 bps – to 1.75%.
Government
securities
Non-government
securities
Deposits
31.12.2007 31.12.2008 31.12.2009
per cent
73.3
7.1
19.6
10.6
6.7
86.2
6.0 7.2
82.7
0
20
40
60
80
100
2009
Annual Report 2009
Foreign exchange reserves management
Figure 9
Official interest rates in the US, euro area, the UK, Australia and Norway
Source: NBP study based on Bloomberg.
Main trends observable throughout the year in the markets whose instruments dominated
in individual currency portfolios have been outlined below.
5.5.1. The US, euro area, UK and Australian government securities market
The year 2009 saw a material increase in yields on 10-year government securities in all of
the analysed markets (Australian – by 165 bps, American – 162 bps, British – 100 bps and euro
area – 44 bps). Whereas growth pattern occurred also in the yields on 2-year Australian and
American government securities (by 166 bps and 37 bps, respectively), fall was posted by UK and
euro area securities (by 101 bps and 42 bps, respectively). As a result, the spread between the
yields on 10- and 2-year bonds in the US, euro area and the UK markets grew to reach the highest
level in at least a decade.
Figure 10
Changes in yields on 2-year and 10-year government securities in the US, the UK and Australia
Source: NBP study based on Bloomberg.
67
0.0
1.0
2.0
3.0
4.0
5.0
per cent
31.12.08 31.03.09 30.06.09 30.09.09 31.12.09
USD EUR GBP AUD NOK
-42
-101
166 162
44
100
165
37
-150
-100
-50
0
50
100
150
200
US Euro UK Australia US UK Australia
area
Euro
area
2 Y 10 Y
bps
2009
68
Foreign exchange reserves management
N a t i o n a l B a n k o f P o l a n d
The strong declining tendency in the yields on government bonds, observed as from the
second half of 2008, decelerated in 2009 Q1. Yields on 2-year securities (especially euro area and
UK securities) ebbed down in that period, inhibited by the expectations regarding a decrease in
policy rates and sustained increased risk aversion of the investors. As a result of the latter factor
capital flew into Treasury securities markets, which are perceived as the most secure investments.
Yields on 10-year bonds, in turn, edged up, as fears increased about the pro-inflation effects of
higher budget expenses, as well as the market’s ability to absorb large quantities of new
government issues.
In 2009 Q2, risk aversion gradually diminished as a result of more optimistic information
regarding both the economic condition and the situation in the banking sector. Consequently,
investors increased their exposure in markets of higher-risk instruments, which are potentially more
profitable. Expectations regarding subsequent decreases in policy rates have also subsided. At the
same time, the issue of US government securities continued to increase; its effect on the market
was partially reduced due to the quantitative easing policy, conducted by the FED. During this
period, the yields on short-term (most specifically Australian) as well as long-term securities
increased.
Figure 11
Yields on 2-year US, euro area, UK and Australian government securities
Source: NBP study based on Bloomberg.
In the second half of 2009, yields on American, euro area and UK government securities
remained at a relatively stable level due to expectations towards the FED, the ECB and BoE as
regards the keeping the official interest rates at a low level on account of fears for the sustainability
of the observed improvement in global economic conditions (in the third quarter of the year, the
US and euro area economies recovered from technical recession, while the GDP decrease rate in
the UK diminished, to reach -0.2% q/q). During this period, similarly to previous quarters, yields
increased, as the supply grew in market leading American securities. This was only partially
compensated by the purchase of government bonds by the FED, as well as continuing outflow of
capital to higher risk markets.
Yields on Australian, in particular short-term, securities increased in the second half of the
year stimulated by the expectations regarding an increase of cash target rates by the RBA.
0.0
1.0
2.0
3.0
4.0
5.0
6.0
per cent
31.12.08 31.03.09 30.06.09 30.09.09 31.12.09
USD EUR GBP AUD
2009
Annual Report 2009
Foreign exchange reserves management
Figure 12
Yields on 10-year US, euro area, UK and Australian government securities
Source: NBP study based on Bloomberg.
5.5.2. Norwegian interbank deposits market
The interest rate on deposits in the Norwegian krone predominantly reflected the changes
of the policy rates by Norges Bank. Whereas in the first half of the year, interest rates decreased
(by 215 bps for 1-month rates); an increase was observed during the last quarter (by 56 bps).
During 2009, 1-month deposit rates in the interbank market in the Norwegian krone decreased by
168 bps.
Figure 13
The level of 1-month deposit rates as compared to Norges Bank deposit rate
Source: NBP study based on Bloomberg.
69
1.0
2.0
3.0
4.0
5.0
6.0
per cent
31.12.08 31.03.09 30.06.09 30.09.09 31.12.09
USD EUR GBP AUD
0.0
1.0
2.0
3.0
4.0
per cent
31.12.08 31.03.09 30.06.09 30.09.09 31.12.09
depo 1M depo NB
2009
70
Foreign exchange reserves management
N a t i o n a l B a n k o f P o l a n d
5.6. Return on foreign exchange currency reserves
Over the year 2009, the rate of return on foreign exchange currency reserves calculated in
the currency of instruments28 stood at 0.5%. The returns declined as compared to the preceding
year due to the prevailing market conditions: yields in government bonds markets reversed their
steep declining path in 2008, and hence flight to quality tendency diminished, global economic
conditions improved and a number of central banks began a cycle of increases in their policy rates.
Higher yields on government securities occurred in all analysed markets in the 10-year sector;
in 2-year sector, the increase was noted in the Australian and the American market. The value
reflected also record-low interest rates on deposits. It should be stressed that similarly to 2008, the
investment decisions were taken in the context of elevated volatility and significant uncertainty
in financial markets.
Since the beginning of 2008, i.e. since the implementation of the Long-term Foreign
Exchange Reserves Management Strategy of the National Bank of Poland, the aggregate return on
reserves, calculated in the currency of the instruments, stood at 9.1%.
Figure 14
Return on foreign exchange currency reserves of the NBP in years 2006–2009 (excluding
the effects of fluctuations of exchange rates)
Source: NBP data.
The return on foreign exchange currency reserves calculated in PLN29 stood at 1.9% (see
Figure 15) and reflected both the rate of return in the currency of instruments and by depreciation
of PLN in relation to some of reserve currencies, as depicted in Figure 16 – AUD, NOK and GBP (by
20.1%, 14.3% and 6.7%, respectively).
In the period from 1 January 2008 until 31 December 2009, the aggregate return on
reserves, calculated in PLN, stood at 23.8%.
8.5
3.2
5.4
0.5
0
2
4
6
8
10
per cent
2006 2007 2008 2009
Current return on reserves in the currency of the instruments
28 The return (rate of return) on foreign exchange/currency reserves in the currencies of individual investment portfolios
is calculated on the basis of daily fluctuations in the market value of the instruments.
29 Moreover, the return on foreign exchange currency reserves in PLN includes the effect of fluctuations in the exchange
rates of reserve currencies in relation to PLN.
2009
Annual Report 2009
Foreign exchange reserves management
Figure 15
Return on foreign exchange currency reserves in years 2006–2009 (including the effects
of exchange rates’ fluctuations)
Source: NBP data.
Figure 16
Exchange rates of reserve currencies in relation to PLN in years 2006–2009 (as at ends of
periods)
Source: NBP data.
71
-2.0
-6.8
21.4
1.9
-10
0
10
20
30
per cent
2006 2007 2008 2009
Current return on reserves in PLN
2.91 2.96 2.85
3.83
3.58
4.87
4.60
2.30
2.14 2.05
2.56
2.44
4.17 4.11
5.71
4.29
0.45 0.42 0.49
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2006 2007 2008 2009
USD/PLN EUR/PLN GBP/PLN AUD/PLN NOK/PLN
2009
72
Foreign exchange reserves management
N a t i o n a l B a n k o f P o l a n d
5.7. Investment income
In 2009, in spite of lower return on foreign exchange currency reserves, the NBP achieved
high investment income, comparable to the level from the preceding year.30
The net income from investment activity related to the management of the foreign exchange
currency reserves, excluding the exchange rate valuation effects, stood at PLN 6.1 billion in 2009,
which is an equivalent of EUR 1.4 billion or USD 1.9 billion (as against PLN 6.9 billion in 2008).
The balance of actual exchange rate differences, recorded in accounting books of the NBP,
amounted to PLN 15.1 billion in 2009.
5.8. Return enhancement on foreign exchange currency
reserves
In 2009, under the Long-term Foreign Exchange Reserves Management Strategy of the
National Bank of Poland, the Bank took a number of measures so as to reduce the risk of
investments and enhance the return on foreign exchange currency reserves, i.e.:
• applied advanced methods of counterparty credibility assessment to expand the system of
limits on credit risk;
• developed new optimisation models in order to determine the parameters of the Strategic
Allocation of Assets, which allowed in particular to better represent how rates of return
are distributed;
• further diversified investment instruments, taking into account current market conditions,
i.a.:
– broadened the spectrum of non-government instruments;
– completed work to commence a new investment project in 2010 – Securities Lending;
• conducted complex analyses of the development of foreign exchange markets in the
context of the currency composition of global reserves;
• implemented a new version of foreign exchange reserves management system.
30 Pursuant to the prudence principle, applied in accounting, the investment income does not include positive,
unrealised differences on valuation of assets and liabilities, recorded as obligations, arising in the context of
increasing prices of securities. However, an increase in market value of investment portfolios may substantially affect
the rate of return on reserves. Such a situation was observed in 2008, when a rapid decrease in yields on securities
substantially increased the rate of return on reserves. The principles of valuation of holdings in securities also
influence the result of financial operations. Additionally, it should be noted that the level of reserves has increased
over the past two years, which affected the amount of generated income without having any effect on the calculated
rate of return.
2009
Annual Report 2009
Foreign exchange reserves management
73
Highlights in 2009
The NBP:
• Maintained positive rate of return on reserves, both in the currency of instruments and in
PLN (0.5% and 1.9%, respectively), despite difficult conditions in financial markets.
• Expanded the system of limits on credit risk, by using advanced methods of counterparty
credibility assessment.
• Developed new optimisation models in order to determine the parameters of Strategic
Allocation of Assets.
• Proceeded actions aimed at further diversification of reserves, pursuant to its Long-term
Foreign Exchange Reserves Management Strategy.
2009
74 N a t i o n a l B a n k o f P o l a n d
2009
Annual Report 2009
Zarzŕdzanie rezerwami dewizowymi
6
FOREIGN EXCHANGE ACTIVITY31
31 Tasks in this field are fulfilled primarily pursuant to Article 3 section 2 para. 3 and Article 52 of the Act on the NBP
and the provisions of the Act of 27 July 2002 – Foreign Exchange Act (Journal of Laws No 741, item 1178).
2009
76
Foreign exchange activity
N a t i o n a l B a n k o f P o l a n d
The purpose of the NBP foreign exchange activity is to ensure security of foreign exchange
transactions and to exercise control within the scope specified in the provisions of the Foreign
Exchange Act. Whereby, the NBP primarily maintains a register of bureaux de change, issues
decisions on foreign exchange matters and monitors and controls foreign exchange transactions.
6.1. Register of bureaux de change
As at 31 December 2009, the register of bureaux de change conducting foreign exchange
market operations included 3,060 business entities which performed this kind of operations in
4,355 bureaux de change. This represents an increase in the number of bureaux de change by 162
as compared to 2008 (as at 31 December 2008, there were 4,193 bureaux de change operating
in Poland).
In 2009, a total of 1,095 entries into the register of bureaux de change were made (as
compared to 824 in 2008), of which:
• 230 regarded new entities (164 in 2008);
• 308 regarded deletion of entities (159 in 2008);
• 557 regarded change of data entered into the register (501 in 2008).
6.2. Foreign exchange related decisions
In 2009, a total of 282 decisions concerning foreign exchange matters were issued,
including 112 permits, 170 other decisions32 and 7 rulings (as compared to 3,702 decisions and
23 rulings in 2008).
The reduced number of foreign exchange decisions was due to the amendment of the
Foreign Exchange Act. On 24 January 2009, conclusion of agreements and performance of other
legal actions causing or likely to cause foreign exchange settlements to be made in Poland were
exempted from restrictions.
6.3. Foreign exchange control
In 2009, a total of 3,006 inspections were conducted (as compared to 3,079 in 2008),
including:
• 2,069 inspections concerning performance of the reporting responsibilities in respect of
the balance of payments (1,986 inspections in 2008);
• 937 inspections regarding foreign exchange market operations (1,093 in 2008).
1,130 inspections, i.e. 38% of all the conducted inspections, detected irregularities (as
compared to 1,271, i.e. 41%, in 2008). In the case of the irregularities, post-inspection
recommendations were submitted to the managers of the inspected units, committing the
management unit to comply with the applicable regulations. In the case of bureau de change
activity, administrative sanctions were applied and the entities were deleted from the register of
bureau de change activities by way of decision.
32 Regarding discontinuance of proceedings, change of permits and repeal of a decision.
2009
Annual Report 2009
Foreign exchange activity
77
Highlights in 2009
The NBP:
• Made 1,095 entries in the register of bureau de change.
• Issued a total of 282 decisions concerning foreign exchange matters.
• Made 3,006 inspections concerning foreign exchange turnover; irregularities detected
in 1,130 cases.
2009
78 N a t i o n a l B a n k o f P o l a n d
Annual Report 2009
7
THE PAYMENT SYSTEM33
33 Tasks in this field are fulfilled pursuant to, i.a. Article 3 section 2 para. 1 and 6 of the Act on the NBP.
2009
80
The payment system
N a t i o n a l B a n k o f P o l a n d
The National Bank of Poland contributes to the development of the payment system. Most
specifically it handles money clearings, operates payment systems and conducts interbank
settlements, exercises oversight of systems within the payment system, drafts relevant legal acts
and carries out other activities within the scope of the payment system development.
In 2009, the activities of the NBP dedicated to the development of the payment system
focused on the performance of oversight functions, activities for the development of non-cash
transactions and payment system, as well as current servicing of the SORBNET, SORBNET-EURO
and TARGET2-NBP systems.
7.1. Oversight of payment systems, authorisation and clearing
systems and securities settlement systems
The NBP oversees payment systems, authorisation and clearing systems and securities
settlement systems with the mission to minimise the risk related to possible interference in the
operations of these systems.
7.1.1. Oversight of payment systems, authorisation and clearing systems
To this effect, in 2009, the NBP in particular:
– validated the introduction of changes by KIR SA in ELIXIR and EuroELIXIR systems; the
changes were related to KIR SA’s contemplated transfer of settlement of EuroELIXIR onto
Single Shared Platform (SSP) of TARGET2 system;
– validated the operation of authorisation and clearing systems by: SkyCash Poland SA,
CASHBILL SA, Centrum Elektronicznych Usług Płatniczych eService SA and PayTel SA, as
well as changes in the operating principles of the authorisation and clearing system
operated by First Data Polska SA;
– collected and analysed statistical data and information on the operation of large value
payment systems, i.e. SORBNET, SORBNET-EURO and TARGET2-NBP, monitored the
operation of those systems and issued opinions on functional changes designed principally
to minimise the systemic risk;
– collected and analysed statistical data on payment cards, cash clearing and interbank
settlement market, the market for intermediation in effecting domestic and international
money transfers, as well as the market for intermediation in accepting payments to bank
accounts.
7.1.2. Oversight of securities settlement systems
The President of the Republic of Poland referred the Act of 4 September 2008 amending the
Act on Trading in Financial Instruments and several other Acts to the Constitutional Tribunal.
Hence, in April 2009, the NBP Management Board and the MPC, acting upon the request of the
CT, issued an opinion on the significance of the National Depository for Securities (KDPW SA) for
the implementation of constitutional and other statutory duties of the NBP. On 16 July 2009, the
Constitutional Tribunal issued a decision concerning the conformity with the Constitution of the
provisions of the abovementioned Act, whereby the NBP was committed to sell its shares in the
2009
Annual Report 2009
The payment system
KDPW SA. The Constitutional Tribunal ruled that statutory obligation for the NBP to sell its shares
in the KDPW SA is against the Constitution.
Moreover, as the abovementioned Act entered into force on 21 October 2009, the President
of the NBP acquired new powers: to assist the Polish Financial Supervision Authority in oversight
of clearing and securities settlement systems. In accordance with these powers, the President may
issue opinions on legal acts specifying the operating principles of clearing and securities settlement
systems and of their adjustments. He may also demand information in writing on the activities of
the KDPW SA within the scope of settlements and transaction clearing.
In 2009, the NBP, as one of the shareholders of the KDPW SA, took active part in works on
the Strategy of the National Depository of Securities for Years 2010–2013, adopted by the
Supervisory Board of the KDPW SA on 8 December 2009.
7.2. Policy and development of the payment system
7.2.1. Legal framework of the payment system
On 10 March 2009, due to the change of statutory mandate, the President of the NBP
signed regulation No 3/2009 concerning the manner of carrying out interbank settlements.
Due to the transfer of settlement of the EuroELIXIR system, operated by KIR SA, onto the
SSP of the TARGET2 system on 8 June 2009, the NBP Management Board adopted the following
resolutions on 21 May 2009:
– amendment to the resolution of the Management Board of the National Bank of Poland
No 12/2005 of 22 February 2005 on introduction of a model agreement on the terms of
opening and maintaining RTGS accounts in the SORBNET-EURO system;
– resolution on introduction of a model agreement on the terms of opening and maintaining
EUR accounts in the TARGET2-NBP system.
Moreover, the NBP issued an opinion on the bill on payment services, drafted by the Ministry
of Finance, which implemented Directive 2007/64/EC of the European Parliament and of the
Council of 13 November 2007 on payment services in the internal market. The NBP representatives
participated in the works of the payment services working group (appointed within the Financial
Market Development Council at the Minister of Finance), which developed the aforementioned
draft Act.
7.2.2. Development of the functionality of domestic large value payment
systems and adjusting them to payment systems operated within
the EU
Whereas KIR SA and the NBP decided to transfer the settlement of the EuroELIXIR system,
operated by KIR SA, directly to the SPP of the TARGET2 system as from 8 June 2009, the NBP has
drafted adjustments of functionalities to be implemented in the SORBNET-EURO system. Whereby
the banks which participate in the SORBNET-EURO system, i.e. banks which are not direct
participants of the TARGET2 system could participate in the settlement of the EuroELIXIR system
on SPP.
81
2009
82
The payment system
N a t i o n a l B a n k o f P o l a n d
Since the NBP will have to discontinue intermediation in clearing of banks’ payments via the
TARGET2 system, and thus, the SORBNET-EURO system will cease operations upon the lapse of
a four-year transition period in 2012, in 2009, works on the project SORBNET-EURO–2012,
Release (SE-2012) commenced. They aimed at development of a new application (NBP-PHA) which
will replace the SORBNET-EURO system. Launching of the application is scheduled for January 2012.
7.2.3. Promotion of non-cash transactions
In 2009, further activities proceeded to develop and promote non-cash transactions. Works
came to an end on the long-term, comprehensive Scheme for Development Non-Cash Transactions
in Poland for the Years 2009–2013 (previously called Strategy for the Development of Non-Cash
Transactions in Poland for the Years 2009–2013). The draft Scheme was developed by the NBP, the
Polish Bank Association (ZBP) and the Coalition for Non-Cash Transactions and Micropayments.
Following the approval of the Scheme on 19 February 2009, the NBP Management Board
submitted it to the Ministry of Finance so as the latter can adopt it as a government document.
Activities undertaken in 2009 to develop non-cash transactions primarily reflected the plans
envisaged to meet the aims adopted in the Scheme. The NBP was involved in promotion of non-
-cash transaction via:
– regulatory activities (the Bank analysed legal acts in order to propose amendments hereto,
to enable the conduct of non-cash transactions to the largest extent possible; cooperated
in developing new legal acts for the payment services market);
– educational and promotional activities (the Bank cooperated in promoting non-cash
payments by building confidence in non-cash money and payments; cooperated with the
Coalition for Non-Cash Transactions and Micropayments of the ZBP under preparations for
the educational and promotional campaign dedicated to non-cash transactions);
– research activities.
7.2.4. Development of SEPA
In 2009, implementation of Single Euro Payments Area continued. SEPA was initiated by the
European banking sector. During the discussed period, 32 European countries were involved in the
project. SEPA seeks to pave the way for non-cash payments in euro, whereby such payments could
be made on common terms throughout all the countries participating in SEPA. At the European
level, SEPA is coordinated by the European Payment Council (EPC) and supported by EU
authorities, including the ECB. In Poland, the coordination of the implementation of SEPA has been
entrusted to SEPA Poland Structure (SEPA PL) – a body operating at the ZBP, whose actions are
supported by the NBP.
Moreover, the NBP plays an important infrastructural role within the scope of the SEPA
Credit Transfer (SCT) service, offered by the STEP2 system. The NBP, as a direct participant of this
system, acts as a clearing bank for commercial banks which concluded an agreement on indirect
participation in the STEP2 SEPA Credit Transfer system. As at 31 December 2009, 10 banks
participated in the SCT scheme through the NBP; during that year, four commercial banks joined
the scheme.
The year 2009 saw a material increase both in the number and value of SEPA transactions
in the EuroELIXIR system: from 97,747 transactions with the value of EUR 595.58 million in January
to 260,819 transactions with the value of EUR 1,229.86 million in December 2009.
2009
Annual Report 2009
The payment system
Over that period, SEPA Poland’s activities focused mainly on the promotion of this initiative
in the banking sector and public administration and on agreeing upon the amendments to SEPA
operating principles introduced by the European Payment Council.
On 13 August 2009, the NBP Management Board decided that the NBP would not join the
SEPA Direct Debit (SDD) system, and thus that it would not act as a middleman to Polish banks in
the intermediation services in the clearing of SDD via the STEP2 system. Such a solution stemmed
primarily from the lack of interest in the SDD product, both on the side of the NBP clients and the
clients of commercial banks, as well as from legal barriers and the risk resulting from them,
impeding the incorporation of the central bank to the SEPA Direct Debit system.
7.2.5. Payment System Council
The Payment System Council was established in 1998 as a consultative and advisory body
for the NBP Management Board. The Council, in particular, analyses and evaluates the Polish
payment system and legal regulations applicable to it on an ongoing basis. It undertakes actions
to integrate activities of the banking sector within the scope of the payment system and offers
solutions which seeks to: adjust Polish payment system to the EU requirements, minimise risk in
the payment system, increase the efficiency of payment transactions and raise its security, as well
as promote non-cash transactions.
The participants of meetings of the Payment System Council include the representatives
of the NBP, the Ministry of Finance, the Polish Financial Supervision Authority, the ZBP, KIR SA,
the National Depository of Securities, five commercial banks, Poczta Polska SA and First Data
Polska SA.
During four meetings held in 2009, the Council examined and discussed the results of the
comparative analyses conducted within the NBP, concerning: selected elements of Polish payment
system vis-a-vis systems from other EU member states; the amount of fees and commissions in
zloty related to monetary clearings in Polish banking sector in the period from June 2008 until June
2009; the amount of fees charged on cross-border transfers made in euro in Polish banks in the
period from November 2007 until February 2009; as well as the access of Polish citizens to bank
accounts in 2006 and 2009.
7.3. Implementation of operational tasks
7.3.1. Integration with payment systems operated in the European Union
The NBP joined the TARGET2 system in May 2008. Hence, a four-year transition period
began for the Polish banking sector to migrate out of the SORBNET-EURO system and join the new
system (this process is scheduled for completion by May 2012). During this period, banks will have
to agree on the method of clearings in the euro, i.e. either directly, using the SPP TARGET2, or via
another (commercial) bank, offering clearings using the SPP. As part of this process, on 8 June
2009, the settlement of the EuroELIXIR system, operated by KIR SA, as well as the account of
another Polish bank – ING Bank Alaski SA, were transferred from the SORBNET-EURO system to the
TARGET2-NBP system.
83
`
2009
84
The payment system
N a t i o n a l B a n k o f P o l a n d
7.3.2. Operation of banks’ current accounts in the SORBNET system
As at the end of December 2009, the NBP Head Office maintained zloty current accounts (in
the SORBNET system) for 54 banks, i.e. 1 bank less than in the preceding year.
In 2009, about 1,795 thousand operations were performed in the banks’ current accounts
held with the NBP Head Office (1,638 thousand in 2008) for the total amount of PLN 31.4 trillion
(PLN 33.4 trillion in 2008). This translates into an increase in the number of operations by 157
thousand (about 9%) and a decrease in their total value by PLN 2.0 billion (about 6%) as compared
to 2008. The average value of transactions decreased by about 14%, to reach PLN 17.5 million
(PLN 20.4 million in 2008).
Table 6 outlines the breakdown of the turnover on banks’ current accounts held in the zloty
in the SORBNET system, while Table 7 provides the breakdown of orders by main categories of
operations performed on those accounts.
Customer transfer orders, which constitute more than a half (54.1%) of entire turnover,
hold the dominant position in the current account turnover, in spite of a slight decrease by 2.2 pp.
Whereas the turnover from the exchange of transfer orders in the interbank market fell by 2.9 pp
in the total volume of all orders processed and by PLN 1.3 trillion in value, the turnover from
KIR SA orders rose – for the third subsequent year – by 0.2 percentage points in the total volume
of all orders processed and by PLN 0.02 trillion in value.
Table 6
Breakdown of turnover in banks’ zloty current accounts in the SORBNET system in 2009
balance
debits credits debits credits
Turnover (in million zloty)
of which:
Turnover
breakdown
(in %)
Types of current
account transactions
Balance of funds in banks’ accounts
(in PLN million):
– as at beginning of the year: 23,964.7
– as at the end of the year: 36,109.3
Movement in balance of funds
in banks’ current accounts, of which:
1) customer transfer orders:
– interbank
– involving the National Depository
for Securities
– involving other customers of the NBP
2) interbank transactions:
– money market
– FX market
– securities
of which secondary market trading in:
– Treasury bills
– NBP money market bills
3) drawings or repayments
of NBP loans to banks
4) purchase (buyback) of securities
from the NBP:
5) transactions and operations settled by
the National Depository for Securities
– NBP money market bills
– other securities
–
12 144.6
358 647.8
0.0
-7 159.1
365 806.9
0.0
0.0
0.0
0.0
0.0
0.0
-2 323.7
-21 845.8
7 780.5
-27 056.7
5 210.9
–
31 393 496.2
16 991 714.5
16 071 822.5
25 035.5
894 856.4
5 509 437.3
3 702 306.1
956 582.8
850 548.3
807 185.1
19 036.2
4 025 162.3
1 707 159.9
1 491 691.4
1 707 159.9
0.0
–
31 405 640.9
17 350 362.3
16 071 822.5
17 876.4
1 260 663.4
5 509 437.3
3 702 306.1
956 582.8
850 548.3
807 185.1
19 036.2
4 022 838.6
1 685 314.1
1 499 471.9
1 680 103.2
5 210.9
–
100.0
54.1
51.2
0.1
2.9
17.5
11.8
3.0
2.7
2.6
0.1
12.8
5.4
4.8
5.4
0.0
–
100.0
55.2
51.2
0.1
4.0
17.5
11.8
3.0
2.7
2.6
0.1
12.8
5.4
4.8
5.3
0.0
2009
Annual Report 2009
The payment system
Source: NBP data.
Table 7
Number of transfer orders by principal types of operations performed in banks’ zloty current
accounts in the SORBNET system in 2009
85
7) exchange of transfer orders via
the National Clearing House:
– morning settlement session
– afternoon settlement session
– evening settlement session
8) purchase or sale of cash at the NBP of:
– domestic currency
– foreign currency
6) placings and returns of term deposits
at the NBP
9) purchase or redemption of Treasury
securities:
– Treasury bills
– other securities
12) interest paid or received by banks
11) purchase or sale of foreign
currencies at the NBP
13) transactions in reserve accounts
10) open market operations
– repos
– reverse repos
– outright sales
14) other transactions
-311 988.8
-239 498.9
-74 295.1
1 805.2
1 758.0
1 762.3
-4.3
-862.0
-16 342.7
3 941.2
-20 283.9
831.6
-3 565.5
-6.3
-718.0
-718.0
0.0
0.0
779.5
713 852.4
388 755.2
197 808.9
127 288.3
163 498.0
163 493.7
4.3
594 624.7
115 011.6
53 241.7
61 770.0
602.0
14 304.2
142.1
41 189.7
41 189.7
0.0
0.0
25 106.1
401 863.6
149 256.4
123 513.8
129 093.4
165 256.0
165 256.0
0.0
593 762.7
98 668.9
57 182.9
41 486.0
1 433.6
10 738.7
135.8
40 471.7
40 471,7
0.0
0.0
25 885.6
2.3
1.2
0.6
0.4
0.5
0.5
0.0
1.9
0.4
0.2
0.2
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.1
1.3
0.5
0.4
0.4
0.5
0.5
0.0
1.9
0.3
0.2
0.1
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.1
1 795 020 1 642 192 1 696 552 100.0 100.0
Number of payment orders executed
in current accounts Order breakdown
(in %)
total
of which:
debits credits debits credits
Item
Total number of payment orders
performed in banks’ current accounts,
of which:
1) customer transfer orders:
– interbank
– involving the National Depository
for Securities
– involving other customers of the NBP
2) interbank transactions:
– money market
– FX market
– securities
of which secondary market trading in:
– Treasury bills
– NBP money market bills
3) drawings or repayments of NBP
loans to banks
5) transactions and operations settled
by the National Depository for Securities
4) purchase (buyback) of securities
from the NBP:
– NBP money market bills
– other securities
1 467 384
1 409 700
985
56 699
130 273
66 394
51 987
11 892
10 729
153
24 085
2 988
2 949
39
37 357
1 421 073
1 409 700
709
10 664
130 273
66 394
51 987
11 892
10 729
153
9 206
1 465
1 465
0
18 301
1 456 011
1 409 700
276
46 035
130 273
66 394
51 987
11 892
10 729
153
14 879
1 523
1 484
39
20 785
86.5
85.8
0.0
0.6
7.9
4.0
3.2
0.7
0.7
0.0
0.6
0.1
0.1
0.0
1.1
85.8
83.1
0.0
2.7
7.7
3.9
3.1
0.7
0.6
0.0
0.9
0.1
0.1
0.0
1.2
2009
86
The payment system
N a t i o n a l B a n k o f P o l a n d
Source: NBP data.
7.3.3. Maintenance of banks’ current accounts in the SORBNET-EURO system
As at the end of December 2009, the NBP Head Office maintained (in the SORBNET-EURO
system) current accounts in euro for 28 banks, i.e. 4 banks less than in the previous year.
In 2009, about 226 thousand operations were performed in the banks’ current accounts in
the SORBNET-EURO system (275 thousand in 2008) for the total amount of EUR 26.0 billion (EUR
37.2 billion in 2008). This translates into a decrease in the number of operations by 49 thousand
(about 18%) and in their total value by EUR 11.2 billion (about 30%) as compared to 2008. The
average value of transactions amounted to EUR 115 thousand (EUR 135.2 thousand in 2008), i.e.
it decreased by EUR 20.2 thousand (about 15%). The decrease in the number and value of
transactions in 2009 as compared to 2008 resulted from the launching of the TARGET2-NBP
system in 2008 and gradual migration of the participants of the SORBNET-EURO system (banks and
KIR SA) to TARGET2-NBP.
Table 8 portrays the breakdown of the turnover in banks’ current accounts in the SORBNET-
-EURO system, while Table 9 outlines the breakdown of orders by main categories of operations
performed in those accounts.
Turnover from customer transfer orders fell by around EUR 160 million as compared to
2008. Its share in turnover structure shrank by 0.2 percentage points.
7) exchange of transfer orders via
the National Clearing House:
– morning settlement session
– afternoon settlement session
– evening settlement session
8) purchase or sale of cash at the NBP of:
– domestic currency
– foreign currency
6) placings and returns of term deposits
at the NBP
9) purchase or redemption of Treasury
securities:
– Treasury bills
– other securities
12) interest paid or received by banks
11) purchase or sale of foreign currencies
at the NBP
13) transactions in reserve accounts
10) open market operations
– reverse repos
– outright sales
14) other transactions
3 933
40 078
13 377
13 375
13 326
72 547
72 524
23
3 914
1 000
2 914
379
379
0
0
187
4 593
114
7 188
2 030
18 960
5 599
7 494
5 867
32 820
32 798
22
1 452
324
1 128
197
197
0
0
69
1 878
52
4 546
1 903
21 118
7 778
5 881
7 459
39 727
39 726
1
2 462
676
1 786
182
182
0
0
118
2 715
62
4 794
0.1
1.2
0.3
0.5
0.4
2.0
2.0
0.0
0.1
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.3
0.1
1.2
0.5
0.3
0.4
2.3
2.3
0.0
0.1
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.3
– repos
Table 8
Breakdown of turnover in banks’ current accounts in EUR in the SORBNET-EURO system in 2009
Source: NBP data.
2009
Annual Report 2009
The payment system
87
4) exchange of the National Clearing
House orders in Target2-NBP:
– during the 1st cycle
– during the 2nd cycle
739 514.7
957 275.4
-217 760.7
1 623 378.3
594 400.6
1 028 977.7
2 362 893.0
1 551 676.0
811 217.0
6.2
2.3
4.0
9.1
6.0
3.1
7) domestic customer transfer orders:
6) exchange of domestic orders via the
National Clearing House until 5 June:
– interbank
– morning settlement session
– involving the National Depository
for Securities
– afternoon settlement session
– involving other customers of the NBP
667 541.9
-99 346.6
0.4
121 070.1
-9.7
-220 416.8
667 551.2
199 608.7
711 772.3
199 595.1
192 296.3
9.7
519 476.1
3.8
867 150.5
612 425.7
199 595.5
313 366.4
0.0
299 059.3
667 555.0
0.8
2.7
0.8
0.7
0.0
2.0
0.0
3.3
2.4
0.8
1.2
0.0
1.2
2.6
8) drawings or repayments of NBP loans
to banks
0.0 415 060.0 415 060.0 1.6 1.6
5) domestic operations
on the interbank market:
– money market
– FX market
– securities
0.0
0.0
0.0
0.0
1 783 364.4
871 537.1
911 827.3
0.0
1 783 364.4
871 537.1
911 827.3
0.0
6.9
3.3
3.5
0.0
6.9
3.4
3.5
0.0
9) transactions and operations settled by
the National Depository for Securities
11 979.9 0.4 11 980.3 0.0 0.0
10) interest paid or received by banks -185.9 327.2 141.3 0.0 0.0
11) other transactions -7 874.9 9 741.8 1 866.8 0.0 0.0
balance
debits credits debits credits
Turnover (in EUR thousand)
of which:
Turnover
breakdown
(in %)
Types of current account
transactions
Balance of funds in banks’ accounts
(in EUR thousand):
– as at the beginning of the year:
117 873.3
– as at the end of the year:
42 826.4
Movement in balance of funds in banks’
current accounts, of which:
1) cross-border interbank payments
3) exchange of cross-border orders via
the National Clearing House until 8 June
–
-75 046.9
-7 277 487.6
457 513.4
–
26 020 461.4
18 917 168.1
2 271 120.2
–
25 945 414.4
11 639 680.5
2 728 633.5
–
100.0
72.7
8.7
–
100.0
44.9
10.5
2) cross-border customer payments 5 433 298.3 88 920.1 5 522 218.3 0.3 21.3
2009
88
The payment system
N a t i o n a l B a n k o f P o l a n d
Table 9
Number of transfer orders by principal types of transactions performed in banks’ euro current
accounts in the SORBNET-EURO system in 2009
Source: NBP data.
7.3.4. Maintenance of banks’ current account in the TARGET2-NBP system
As at the end of December 2009, the NBP Head Office maintained euro accounts in the
TARGET2-NBP system for 5 participants (4 commercial banks and the National Clearing House) and
for the NBP, i.e. 2 participants more than in the previous year. In 2009, an account for a new
participant (ING Bank Alaski SA) was opened, together with a so-called technical account for
clearings carried out by KIR SA.
total
debits credits debits credits
Number of payment orders executed
in current accounts
of which:
Order breakdown
(in %)
Item
1)
2)
3)
4)
5)
6)
7)
Total number of payment orders
performed in banks’ current accounts,
of which:
cross-border interbank
payments
cross-border customer
payments
exchange of cross-border orders via the
National Clearing House until 8 June
– morning settlement session
– during the 1st cycle
– afternoon settlement session
– during the 2nd cycle
exchange of domestic orders via the
National Clearing House until 5 June
exchange of the National Clearing
House orders in Target2-NBP:
domestic customer transfer orders:
domestic operations on
the interbank market:
– money market
– FX market
– securities
– interbank
226 499
52 202
156 302
3 601
6 137
699
312
387
0
4 801
2 173 532 1 641 3.0 0.8
2 628 519 2 109 2.9 1.0
1 282
507 507 507 2.9 0.2
536 1 253 3.0 0.6
1 051 3 750 6.0 1.8
2 764
3 373
17 638
8 001
4 025
1 070
1 423
699
312
387
0
668
755
210 067
44 201
152 277
2 531
4 714
699
312
387
0
2 096
2 618
100.0
45.4
22.8
6.1
8.1
4.0
1.8
2.2
0.0
3.8
4.3
100.0
21.0
72.5
1.2
2.2
0.3
0.1
0.2
0.0
1.0
1.2
8)
9)
10)
11)
transactions and operations settled by
the National Depository for Securities
interest paid or received by banks
other transactions
7
768
510
78
846
41
7
22
253
2
555
23
0
746
257
76
291
18
0.0
0.1
1.4
0.0
3.1
0.1
0.0
0.4
0.1
0.0
0.1
0.0
– involving the National Depository
for Securities
– involving other customers of the NBP
drawings or repayments of NBP loans
to banks
2009
Annual Report 2009
The payment system
In 2009, about 554 thousand operations were performed on the banks’ current accounts in
the TARGET2-NBP system (326 thousand in 2008) for the total amount of EUR 255.0 billion
(EUR 157.7 billion in 2008). This translates into an increase in the number of operations by
228 thousand (about 41.2%) and in their total value by EUR 97.3 billion (about 38.2%) as
compared to 2008. The average value of transactions amounted to EUR 0.5 million (like in the
previous year).
Table 10 depicts the balance of funds, number and value of orders performed on banks’
euro accounts in the TARGET2-NBP system.
Table 10
Balance of funds, number and value of orders performed in banks’ euro accounts in the
TARGET2-NBP system in 2009
Source: NBP data.
89
Name of
unit
Total
Monthly
average
No Item
1. Balance of funds on the NBP account:
92.8
87.8
17.7
19.7
107.5
46 162
3 099
13 252
29 811
21 253.3
–
–
–
–
–
–
553 938
37 184
159 021
357 733
255 040.0
EUR million
EUR million
EUR million
EUR million
EUR million
pcs.
pcs.
pcs.
pcs.
EUR million
Balance of funds on the banks’ accounts:
Balance of funds at the end of the year (1+2) 95.5
Number of executed orders:
domestic payments
cross-border payments sent
cross-border payments received
Value of executed orders:
as at beginning of the year 125.5
as at beginning of the year 7.1
as at the end of the year 64.4
as at the end of the year 31.1
1.1.
1.2.
2.
2.1.
2.2.
3.
4.
4.1.
4.2.
4.3.
5.
2 414.0
9 346.4
9 493.0
0.5
0.8
0.7
0.3
28 967.8
112 156.3
113 916.0
–
–
–
–
EUR million
EUR million
EUR million
EUR million
EUR million
EUR million
EUR million
domestic payments
cross-border payments sent
cross-border payments received
Average value of orders:
domestic payments
cross-border payments sent
cross-border payments received
5.1.
5.2.
5.3.
6.
6.1.
6.2.
6.3.
2009
90 N a t i o n a l B a n k o f P o l a n d
Highlights in 2009
The NBP:
• Adopted the Scheme for Development of Non-Cash Transactions in Poland for the Years
2009–2013 on 19 February 2009.
• Acquired statutory powers in the scope of oversight of securities settlement and clearing
systems.
• Transferred the settlement of the EuroELIXIR system, operated by KIR SA, from the
SORBNET system to the TARGET2-NBP system.
Annual Report 2009
8
EDUCATION AND INFORMATION
2009
92
Education and information
N a t i o n a l B a n k o f P o l a n d
Pursuant to Article 59 of the Act on the National Bank of Poland, the NBP carries out
publishing and promotional activity. As part of it, the Bank also implements educational and
informational projects designed to enhance the transparency of the NBP’s operations and public
knowledge regarding the principles of operation of the central bank, the banking system, and the
market economy, as well as to disseminate the knowledge about the EMU and the euro in the
society and in the banking sector.
8.1. Promotion
In 2009, the NBP conducted promotional activities concerning the issue of collector coins
and notes (19 topics). The NBP cooperated with the media, organised numerous competitions,
press conferences and meetings on the topics presented on coins and notes. Altogether, over
10 thousand people participated in the events organised by the NBP.
The NBP launched an information campaign on the operation of the Kolekcjoner Internet
auction service through which collector coins and notes have been offered for sale since 2010.
In 2009, the NBP organised Open Days for the sixth time. During this event, the Head Office
and regional branches of the bank were visited by 57 thousand people.
In 2009, the NBP carried out numerous information and PR related projects. These projects
included: celebrations of 180 years of central banking in Poland, which were launched in 2009;
launching of the ”NBP without Secrets” campaign in ”Oliwia” monthly; completion of the NBP
project: ”Warsaw behind Closed Doors“, pursued jointly with ”Gazeta Wyborcza” newspaper; as
well as co-organisation of the ”Art more precious than gold” competition, aimed at honouring
financial institutions which in their activity combine culture, economy and art. Moreover, the NBP
participated in the 9th edition of Polish Financial Forum ”Twoje Pieniadze” (“Your Money”)
(Numismatic Exhibition Coin Expo); the NBP stand was visited by more than 1 thousand people.
The NBP undertook activities promoting the educational mission of the Bank by organising
information campaign of economic education portal – NBPortal.pl, promoting activities in this field
under the IMPULS Enterprising Teachers’ Club project, as well as promoting competitions
organised by the NBP (Written work competition, Władysław Grabski Memorial Award, NBP
President Award for the best master’s thesis).
8.2. Publishing
In 2009 – as in previous years – the NBP issued numerous periodic publications, including in
particular: the Annual Report, Report on NBP Activity, Monetary Policy Guidelines, Report on
Monetary Policy Implementation, Financial System Development in Poland, Monetary Policy
Instruments, International Investment Position of Poland, Inflation Report, Balance of Payments of
the Republic of Poland, Bank i Kredyt (Bank and Credit) two-monthly magazine (with an
educational insert entitled: Derivatives in global economy from A to Z), Information Bulletin and
Preliminary Information.
Most NBP publications are issued in two language versions – Polish and English – with
a circulation of around 1 thousand copies per each version.
In addition, as part of co-operation with the ECB, the NBP published quarterly editions of the
ECB Monthly Bulletin in Polish.
2009 Education and information
The NBP also published a number of studies from the Materiały i Studia (National Bank
of Poland Working Paper) series.
Other releases include: Report on Full Membership of the Republic of Poland in the Third
Stage of the Economic and Monetary Union, Analysis of Prices on Warsaw Residential Real Estate
Market, Securities Settlement Systems in Poland and the European Union (in the Polish, English and
Russian language versions), Poland in the Face of the World Economic Crisis, 5th and 6th edition
of the Survey of the Labour Market in the Mazowieckie Voivodship and numismatic folders (in the
Polish, English and German language versions), certificates for gold coins, posters and other
promotional materials for collector notes and coins.
8.3. Information
8.3.1. Liaising with the media and market analysts
In 2009, the NBP organised approximately 90 meetings with journalists, including press
conferences (such as regular press conferences following the meetings of the Monetary Policy
Council, as well as conferences devoted to inflation and GDP projections), presentations of
collector coins put into circulation as well as other events related to the Bank’s activity.
Approximately 340 interviews and meetings were held with the NBP President, members of the
Monetary Policy Council and the Management Board of the NBP.
8.3.2. NBP website
The NBP website includes information about the ongoing activity of the NBP, presents
official positions of the Bank’s management, as well as documents, statistics and economic
analyses of the NBP.
In 2009, the number of users who visited the www.nbp.pl website amounted to around 900
thousand persons monthly, which translates into an increase of 50% as compared to 2008, when
this number amounted to around 600 thousand.
The year 2009 saw the launching of a new web portal, Obserwator Finansowy (Financial
Observer). The portal is dedicated to current economic events in Poland and in the world. It is also
where an in-depth economic debate takes place, attended by renowned Polish and foreign
economists. The portal plays a particularly significant role in the fulfilment of the informative and
educational function by the National Bank of Poland. Current lack of stability in financial markets
increases the need for credible information and professional analyses. The portal is a perfect source
of information and opinions for media representatives, opinion leaders as well as teachers’ and
academic circles. Obserwator Finansowy presents and comments on the statements of domestic
and foreign economic experts in an accessible manner. Owing to this fact, it has become an
important source of economic knowledge.
Annual Report 2009 93
2009
94
Education and information
N a t i o n a l B a n k o f P o l a n d
8.4. Education
In 2009, the National Bank of Poland conducted numerous activities fostering dissemination
of economic knowledge in the society, understanding of the principles of functioning of the
market economy and economic processes, and acquisition of the skills necessary for efficient
operation in the market economy.
8.4.1. The Program of Economic Education
In 2009, the NBP Management Board adopted the Strategy for Economic Education for the
Years 2010–2012. Its main aim is to help Poles to become conscious customers of financial
institutions, making rational decisions. The Strategy has set two priorities: to educate experts at the
level of postgraduate studies and to implement schemes designed for the inhabitants of villages
and small towns. An important purpose of the Strategy is to prepare experts so that their
knowledge may be used in the process of introducing the euro in Poland.
In 2009, the NBP implemented 71 large-scale projects, of which 43 were carried out in co-
-operation with the media. In the area of competence of the Commission for Education,
172 agreements for additional financing of projects related to economic education were signed.
The project evaluation process implements measures such as readership and broadcasting
audience indices, the number of entries, the level of test results, the number of applications and
the amount of additional financing per recipient.
The following projects were continued under schemes for schools, students, journalists and
the clergy: ”Ekonomia w szkole” (”Economics at School”), ”Moje finanse” (”My Finances”),
”Ekonomia na co dzień” (”Day-to-day Economics”) (in total, over 420 thousand students and
about 6,500 teachers participated in the three programs in 2009), written work competition (619
texts were submitted), Entrepreneurship Olympics, Olympics of Knowledge about Finance,
Olympics of Knowledge about Economics (in total, approx. 42 thousand students across Poland
took part in the said Olympics), Economic education web service at the Opoka website (145
thousand unique users visited the web service), Władysław Grabski Memorial Award (65 authors
submitted their works for competition), Postgraduate Study in Central Banking and Monetary
Policy (35 graduates completed the study), “Basic Economic Concepts” (another 12 films were
produced). Also new projects have been launched; such as postgraduate studies in basic
entrepreneurship for teachers (100 graduates), scholarship program for persons who meet the
requirements to be granted the Polish Charter (Karta Polaka) (20 fellows), bridge scholarship
program for youth from rural areas and small towns who are willing to take up studies related to
banking, finances or economics (in total, nearly 500 scholarships), and a pilot project Ekonomiczny
Uniwersytet Dzieci´cy (Children’s Economic University) (600 children participated in the program).
The Mechanisms of Euro Area Functioning postgraduate studies launched at 17 best universities
throughout the country (850 graduates) are especially noteworthy among the new projects.
The following programs were executed in co-operation with the media for the first time:
“Nasza kasa II” (“Our Money II”) (nearly 6 million viewers), “Jak uniknac pułapki kredytowej”
(“How to Avoid the Credit Trap”) (1 thousand people received detailed anonymous counselling
and 130 thousand people received educational materials), ”Matysiakowie” radio show – idea
placement (800 thousand listeners). An extensive education and information campaign concerning
Poland’s full membership in the Economic and Monetary Union was also conducted. As a part of
this project 145 inserts in economic, social and cultural, as well as Catholic press, with the total
circulation of 2,700 thousand copies, were prepared. Moreover, five hours of programs in radio
stations (Polskie Radio and local stations) were aired and over four hours of debates in TV stations
(TVN and TVN24) were conducted, watched by 6 million viewers. The campaign was also
supported by internet websites such as www.onet.pl, www.rp.pl and www.gazetaprawna.pl.
2009 Education and information
8.4.2. Economic Education Portal – NBPortal.pl
In 2009, the educational offer was extended and made more attractive. Three new
e-learning courses and 19 new multimedia presentations were launched and many articles
explaining economic mechanisms were published. In 2009, Economic Education Portal was visited
by unique users over 1 million times, approximately 150 thousand less than in 2008. The number
of entries compared to the previous year remained at a similar level of over 8 million. The number
of users of the e-learning courses, as in 2008, was around 20 thousand, but the percentage of
successfully completed courses increased.
Measures of effectiveness of NBPortal include own statistics conducted with the use of
Gemius software tools and Lotus Learning Space statistics concerning e-learning courses.
Figure 17
Number of users of e-learning courses at NBPortal in the years 2006–2009
Figure 18
Number of entries of NBPortal users in the years 2008–2009
Annual Report 2009 95
19 782 19 679
36 812
17 930
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
2006 2007 2008 2009
0
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
7 000 000
8 000 000
9 000 000
10 000 000
Unique users’ entries Number of entries
2008 2009
2009
96
Education and information
N a t i o n a l B a n k o f P o l a n d
Figure 19
Percentage of completed e-learning courses at NBPortal in the years 2006–2009
8.4.3. Dissemination of knowledge on the EMU and the euro
On 16 February 2009, the NBP published the Report on the Full Membership of the Republic
of Poland in the Third Stage of the Economic and Monetary Union. Having published the report,
the NBP engaged in educational and promotional activities regarding the euro. The NBP experts
participated in preparing the press inserts, took part in radio programs and TV debates about the
euro, trained journalists and met with regional opinion leaders.
Moreover, the NBP took part in mass events (Schuman Parade, Europe Day) and organised
the NBP Open Days, during which informational materials on the euro currency and banknote
security features were distributed.
8.4.4. The National Bank of Poland Foundation
In August 2009, the NBP established the National Bank of Poland Foundation, which was
entered into the National Court Register, the Register of Associations, Other Social and
Professional Organisations, Foundations and Public Health Care Institutions, and the Register of
Entrepreneurs. Pursuant to its statute, the NBP Foundation was established to support activities
promoting the development of economics and economic education. Furthermore, the NBP
Foundation pursues the following objectives:
• supporting the protection of culture and national heritage,
• supporting the development of culture and art,
• supporting the development of science and education,
• supporting health protection.
Under the services contract concluded by the NBP and the NBP Foundation, the NBP
Foundation ensures the operation of the new system of sales of the collector items issued by NBP
0
10
20
30
40
50
60
70
80
90
100
per cent
2006 2007
Commenced courses Courses successfully completed
2008 2009
2009 Education and information
Kolekcjoner Internet service. The co-operation of the NBP and the NBP Foundation in that respect
is an element of a modern, transparent, market-driven system of selling collector items. The
analysis of economic effectiveness of this system, confirmed by the renowned consulting company
PricewaterhouseCoopers, shows that it is possible for the NBP to obttain additional economic
benefits, resulting mainly from a greater profitability of the activity consisting in selling collector
coins and banknotes at market prices and liquidating the discount granted to numismatic
companies by the Bank until the end of 2009.
The achievement of the NBP Foundation’s objectives in this respect will be an additional
benefit to the Bank’s image in a civil society.
8.4.5. Towards the NBP Centre for Promotion and Economic Education
In 2009, the NBP initiated and carried out works aiming at establishing an institution which
would facilitate activities in the area of economic education. A project called the NBP Centre for
Promotion and Economic Education is being implemented in co-operation with external experts
(the Polish Numismatic Association, the Polish Bank Association, specialists in creating modern
museum exhibitions, historians). Their expertise proved extremely valuable while the scope of
actions necessary to implement the project was determined. As a result of the works carried out
so far, the concept of creating a modern institution resembling a museum emerged – an institution
that would use contemporary audio-visual techniques and address the following topics:
• the history of numismatics, illustrating issues related to money as a mint product and a tool
employed in trade transactions,
• the history of economics, presenting knowledge in the field of finances,
• the history of banking (commercial and central), presenting the development of this area
of economy.
The expected completion of works and opening of the Centre are scheduled for 2011.
8.5. NBP Central Library
The NBP Central Library stocks publications on economics, with particular emphasis on
banking and the money. The library holds some of the country’s most unique reading resources.
Its book collections are made available to all interested parties in the reading room or via
interlibrary lending. Access to databases at NBP Central Library is free and available to all. The
Depository Library of the World Bank, which is located at the NBP Central Library, holds 5,614
volumes and 34 magazine titles.
In 2009, 9,242 readers used the lending room, with 11,889 books made available. There
were 6,639 visitors to the reading room, and 16,094 books were made available to them.
77 institutions used the interlibrary loan service and 570 volumes were borrowed. In total, 15,981
readers used the library collections, and 27,553 books were made available. The Central Library
was visited by 183 groups (about 5,300 people).
Annual Report 2009 97
2009
98
Education and information
N a t i o n a l B a n k o f P o l a n d
Table 11
NBP Central Library’s collection
Source: data of the NBP.
Highlights in 2009
The NBP:
• Adopted the Strategy of Economic Education for the Years 2010–2012, determining the
main objectives of the NBP’s educational policy.
• Launched Obserwator Finansowy Internet website, dedicated to current economic events.
• Established the National Bank of Poland Foundation to support activities promoting the
development of economics and economic education.
• Initiated works connected with establishing the NBP Centre for Promotion and Economic
Education.
Non-serial 103 574 108 017 112 630 116 421
publications volumes volumes volumes volumes
Serial 38 500 39 000 40 300 41 500
publications volumes volumes volumes volumes
Current 525 505 505 505
magazines titles titles titles titles
Type of publication 31.12.2006 31.12.2007 31.12.2008 31.12.2009
Annual Report 2009
9
SERVICES TO
THE CENTRAL GOVERNMENT34
34 Tasks in this field are performed in particular pursuant to Article 3 section 2 para. 4 and Articles 49, 51 and 52 of the
Act on the NBP, the provisions of the Act on Public Finance Act of 27 August 2009 (Journal of Laws No 157, item
1240, as amended) and the provisions of the Banking Act of 29 August 1997 (Journal of Laws of 2002, No 72, item
665, as amended).
2009
100
Services to the central government
N a t i o n a l B a n k o f P o l a n d
The NBP acts as a fiscal agent to the government. It operates central government accounts,
handles the international liabilities and receivables of the state budget, trade in Treasury securities
and manage public debt, particularly with regard to the central government debt.
9.1. Bank accounts operated by the NBP
Within the services provided by the NBP to the central government in 2009, the NBP
operated the bank accounts referred to in Article 160 of the Act on Public Finance of 30 June
2005,35 most of all including the central government account, current accounts of the budgetary
entities, including offices providing services for tax authorities, government special-purpose funds
and auxiliary enterprises of budgetary entities, as well as accounts for permanent expenses of those
units. The NBP also maintained term deposit accounts in zloty and foreign currencies for relevant
authorised entities.
Moreover, the NBP also operated, with the approval of the President of the NBP, accounts
of other legal persons, pursuant to Article 51 section 1 para. 4 of the Act on the NBP (Agency for
Evaluation of Medical Technologies, Demographic Reserve Fund, Social Insurance Institution, Adam
Mickiewicz Institute Cultural Contact Point, Export Credit Insurance Corporation SA, Agricultural
Market Agency, Polish Agency for Enterprise Development, agricultural consultancy units, trade
unions of the NBP employees, as well as accounts of the central banks of: France, Hungary,
Germany, Bank for International Settlements in Basel, and the European Commission as well).
By operating central government accounts, the NBP contributed to the safety and smooth
processing of public funds settlements.
9.1.1. Operating bank accounts
In central government accounts, the NBP performed operations related to the revenues and
expenditures of the state budget. These were made both in non-cash form, mainly in the enbepe
Electronic Banking system, as well as in cash form. A cross-system B2B interface combining the
Integrated Accounting System of the NBP (ZSK) with the IT and accounting system of the account’s
holder is used for operating bank accounts of the State Budget Department and the Paying
Authority Department in the Ministry of Finance. Since October 2009, also the bank accounts of
the Agency for Restructuring and Modernisation of Agriculture have been operated by means of
this IT channel.
Work on the activation of the cross-system B2B interface for other account holders went
ahead apace in 2009. In parallel, the NBP engaged in further cooperation with the Ministry of
Finance on the introduction of new principles for the provision of services to the state budget. The
NBP representatives participated also in legislative works on the public finance bill.
Along with the projects already mentioned, changes introduced in 2009 aimed to help the
account holders manage their funds held in bank accounts. Above all, the NBP account holders
gained access to:
• a mass payment system – NBPCollect, i.e. a specialist settlement service, targeted at
entities which process a large number of payers or categories of payments. Respectively,
35 Since 27 August 2009 the NBP has been operating bank accounts listed in Article 196 of the Public Finance Act of
27 August 2009.
2009
Annual Report 2009
Services to the central government
each payer or category of payment will be assigned an individual account number, the so-
-called micro-account;
• a new version of the enbepe Electronic Banking system, which enhanced comfort of
working with the system and its efficiency,
• an electronic version of forms used to operate bank accounts, i.e. an application to open
bank accounts in PLN or in foreign currencies, operated with the use of the Electronic
Banking system, as well as forms submitted by account holders as payment orders for
operations to be executed in foreign currencies.
9.1.2. Categories of accounts operated by the NBP
The NBP operated accounts in PLN and in foreign currencies, including accounts for handling
funds coming from the European Union budget.
In 2009, the NBP provided services for 3,928 customers (in 2008 – 3,968), for whom
regional branches operated 17,728 accounts (in 2008 – 17,446), of which 9,745 accounts were
operated as part of the third-party external cashier service.36
9.2. Handling international receivables and liabilities of central
government
Pursuant to the contracts of agency signed in previous years with the Minister of Finance,
the NBP handled the central government liabilities and receivables arising from:
• 52 loans granted by international institutions and financial organisations to the
government of the Republic of Poland,
• 52 foreign loans guaranteed by the government of the Republic of Poland, granted to
domestic entities,
• 2 agreements on making loans available to domestic entities.
Acting as a depositary for the World Bank, its agencies and the European Bank for
Reconstruction and Development, the NBP administered 15 promissory notes issued by the
government of the Republic of Poland in connection with Poland’s membership in those
organisations.
101
36 Third-part external cashier service is provided to those account holders whose registered offices are located outside
the city in which the regional branch of the NBP is located.
2009
102
Services to the central government
N a t i o n a l B a n k o f P o l a n d
9.3. Trade in securities
9.3.1. Treasury securities auctions
The NBP, in its capacity of the issuing agent for Treasury securities, is committed to organize
Treasury bill sale and redemption auctions as well as Treasury bond sale, redemption and swap
auctions. In relation to the above, in 2009 the NBP announced the following auctions:
• 42 Treasury bill auctions – where 25-, 26-, 28-, 39-, 49- and 52-week bills were sold. The
total supply amounted to PLN 57.1 billion, the total amount bid – PLN 159.5 billion; bills
worth up to PLN 55.6 billion were allotted. 52-week bills prevailed in the whole issue and
they represented 83.7% of all the bills allotted.
• 40 Treasury bond sale auctions, including 15 non-competitive auctions. The total supply
amounted to PLN 71.1 billion, the total amount bid – PLN 138.7 billion; amount allotted–
PLN 66.5 billion. The majority of bonds offered by the Ministry of Finance were zero-
-coupon bonds, their amount allotted constituted 64.4% of the amount allotted total. The
Ministry of Finance did not offer index-linked bonds or variable-rate bonds.
• 10 Treasury bond swap auctions, where the Ministry of Finance bought back bonds worth
PLN 32.2 billion, and allotted bonds for PLN 33.6 billion. Fixed-rate bonds represented the
straight majority of bonds allotted on all swap auctions (83.3%).
• 4 Treasury bill redemption auctions – the Ministry of Finance bought back Treasury bills
with the nearest maturity dates, altogether bills were bought back for PLN 3.46 billion.
No Treasury bonds redemption auctions were held in 2009.
In September 2009, the NBP concluded an agreement with Bank Gospodarstwa Krajowego
(BGK) on entrusting the NBP with the organization of auctions of bonds issued by BGK, secured or
guaranteed by the State Treasury. By the end of 2009, seven bond auctions were carried out
(including two non-competitive ones), on which fixed-rate bonds were allotted. The supply
of bonds amounted to PLN 7.5 billion, the amount bid – PLN 15.8 billion. Bonds worth up to PLN
7.2 billion were allotted.
9.3.2. Treasury Securities Dealer system
The development of the Treasury Securities Dealer system (DSPW)37 is one of the tasks listed
in the Strategy of the Public Finance Sector Debt Management.
In 2009, pursuant to the Agreement on cooperation with regard to the functioning of the
Treasury Securities Dealer system concluded with the Ministry of Finance, the NBP performed the
following responsibilities:
• Passed to the Ministry of Finance monthly and quarterly assessments of the DSPW banks’
operations, as well as of the candidates to fulfil this function on the Treasury bills and
bonds primary and secondary markets, and on the derivative market.
37 The main aim of the system is to isolate a group of banks (the so-called “primary dealers”) which, in return for specific
privileges, are obliged to provide liquidity, transparency and efficiency of the Treasury securities market.
2009
Annual Report 2009
Services to the central government
• Organised the Treasury securities fixing on the MTS Poland electronic platform (currently
Treasury BondSpot Poland), which was intended to improve the transparency of trading in
securities.38
• Participated in periodical meetings of the Council of Market Participants, arranged by the
Ministry of Finance.
In addition, within the framework of cooperation with the Ministry of Finance, the NBP
examined and reviewed banks whose accounts and Treasury securities deposit accounts are
maintained in the Securities Register.
9.4. Public debt management
Public debt management covered primarily cooperation between the NBP and the Ministry
of Finance within the Public Debt Management Committee.
The objective was to exchange information in order to coordinate the Ministry of Finance’s
public debt management policy with the monetary and foreign exchange policy of the NBP. Most
importantly, the Committee developed a long-term public debt management strategy, minimised
the cost of debt servicing and created conditions for the development of financial markets.
103
38 The DSPW banks are committed to quote every day the purchase and sale prices of bonds specified by the issuer on
the organised electronic market, to close transactions according to the price accepted on the platform, as well as to
inform the market in real time on these quotations.
Highlights in 2009
The NBP:
• Provided services to 3,928 customers and 17,728 accounts.
• Advanced work towards introducing new rules for the provision of services to the central
government.
• Enhanced management of funds in bank accounts for account holders (NBPCollect,
a new release of the Electronic Banking System enbepe).
2009
104 N a t i o n a l B a n k o f P o l a n d
Annual Report 2009
10
RESEARCH39
39 The tasks in this field are implemented in particular on the basis of Article 59 of the Act on the NBP.
2009
106
Research
N a t i o n a l B a n k o f P o l a n d
In 2009, research activity focused on issues related to the participation in the Exchange Rate
Mechanism II, monetary policy, inflation processes, economic condition of enterprises and
households, the impact of global financial crisis on the operations of the world markets, structural
changes in the economy, determinants of economic development, world economy, national and
international economic climate, the balance of payments, and the labour and property market.
Results of the conducted research served to build and improve the model tools designed to develop
forecasts.
The forecasts and findings of research and analytical works fed into the decisions taken by
the Management Board of the NBP and the Monetary Policy Council.
In 2009, as a result of the NPB’s co-operation with researchers affiliated with regional
universities, the Analytic and Research Team at the NBP regional branch in ¸ódę and two Analytic
and Forecast Teams at the regional branches in Kraków and Poznań were established.
In 2009, well-renowned national periodicals (such as Bank i Kredyt (Bank and Credit),
Gospodarka Narodowa (National Economy), Ekonomista (Economist)) and international scientific
journals (International Review of Financial Analysis, Central European Journal of Economic
Modelling and Econometrics, ECB Working Paper) published 101 academic publications of the NBP
employees, including 52 in Polish and 49 in English. Four publications were included in the so-
-called Philadelphia list (cf. Annex 7).
10.1. Research related to participation in the Exchange Rate
Mechanism II (ERM II)
Within the framework of research on the prospective inclusion of the zloty in the ERM II,
the NBP:
• Developed monthly information on the degree of convergence in relation to monetary
Maastricht criteria in new European Union Member States;
• Evaluated prospects for meeting the Maastricht inflation criterion by Poland in 2009;
• Investigated determinants of the prospective inclusion of the zloty in the ERM II.
10.2. Studies of monetary policy, inflation processes and
expectations
• Analyses and studies of the monetary policy covered:
• National and world macroeconomic situation in order to draw up Inflation Reports, the
Report on Monetary Policy Implementation in 2008 and Monetary Policy Guidelines for
2010.
• Monetary policy of other central banks and their communication with the environment.
• Changes in the monetary policy strategy of the main central banks in the context of the
international economic crisis, with particular emphasis on using unconventional
instruments of monetary policy.
2009
Annual Report 2009
Research
• The impact of the international financial markets crisis on the Polish economy.
• Analyses and examinations of prices of consumer goods and services sought to:
• Conduct ongoing analyses and examinations of inflation processes in the national
economy and develop short-term inflation forecasts.
• Conduct sectoral analyses with regard to the structure and performance of the markets
of electricity, gas fuels, liquid fuels and telecommunications. Analyse the impact of the
liberalisation of the energy and telecommunications markets on inflation processes.
• Analyse the impact of the trends in the world commodity markets, including the markets
of agricultural and food products, on the developments in various price categories in the
national economy. The continuous analyses covered the impact of globalisation
processes on selected price processes in Poland.
• Conduct methodological work with regard to the construction, functioning and
evolution of Consumer Price Indices (CPI) and studies related to the core inflation indices.
• Calculate and publish 4 core inflation measures (monthly). Review the existing core
inflation measures – core inflation indices, excluding regulated prices, the most volatile
prices, the most volatile prices and fuel prices, were substituted by two measures: core
inflation excluding administered prices and the most volatile prices.
• Study and analyse the impact of the changes of regulated prices and of indirect taxes’
rates on inflation processes in the economy.
• Analyses of inflation expectations sought to:
• Study quantification methods of inflation perception and inflation expectations on the
basis of quality surveys and analyse the results of using these methods to measure
inflation perception and inflation expectations in the EU countries.
• Study the degree of anticipatory character of inflation expectations among consumers in
EU countries.
• Analyse sources and the method of using information on inflation expectations in central
banks.
• Study the methodology of representation of expert opinions on uncertainty to develop
the concept of the NBP Macroeconomy Survey.
• Analyses of effectiveness of monetary policy transmission mechanism sought to:
• Analyse the changes in effectiveness of monetary policy transmission mechanism, in the
wake of the financial crisis.
• Study the transfer of exchange rate movements to prices, including the possible non-
-linear effects.
107
2009
108
Research
N a t i o n a l B a n k o f P o l a n d
10.3. Enterprise and household surveys
• Analyses and forecasts of the financial standing of enterprises were based on surveys.
The central objective of the analyses was to provide data on the interaction between
monetary policy and real sector of the economy. What is especially valuable, the analyses
provide information of the forecasting character. In addition, they supplement, and in
some aspects materially expand the scope of information contained in the data obtained
from the Central Statistical Office and other research centres. Development of research on
the corporate sector implies extending the analysed subject areas and implementing
modern methods and solutions applied in major research centres and central banks.
• Executive Opinion Survey 2009 conducted by the NBP regional branches for the purposes
of the Global Competitiveness Report.
• Survey studies of financial standing of enterprises:
• Analysed the present and forecast economic situation, in particular the demand,
production, investment activity, envisaged changes in employment and average wages,
economic activity financing, as well as price generating mechanisms. Regarding the last
issue, the conducted survey studies were supplemented by the analysis of changes in
monopolistic margins.
• Due to the economic slowdown, principally addressed the difficulties in the operation of
enterprises, in particular those attributable to the impact of declining demand on the
economic standing of enterprises, the corporate adjustment strategies and actions
envisaged to reduce the operating expenses. The analysis included the use – as declared
by the enterprises – of fiscal stimulus packages implemented by the Polish government.
Moreover, the following were studied in more detail: the availability of bank financing,
the development of liquidity conditions in the corporate sector and the monitoring and
control of non-bank debt by the corporate sector. At the same time, the diversification
of economic climate development in the group of enterprises manufacturing products
for the domestic market, as well as the foreign market was analysed.
• Research on economic activity of enterprises
• Work progressed to evaluate how internationalisation of enterprises impacts their
performance. The analysis covered the engagement of enterprises in export activity, the
impact of importing investment goods on enterprise productivity, the level of
employment and the level of level of wages. Enterprises with foreign equity participation
were studied and the following issues were analysed: the effect of capital inflow on the
level of employment and the propensity to reduce the number of employees, export
intensity and technical production efficiency.
• Analyses aimed at economic evaluation of the consequences of the privatisation process.
State-owned enterprises privatised in the years 1995–2006 were analysed and compared
with private enterprises with similar characteristics in order to eliminate the so-called
selection bias. It allowed to formulate conclusions regarding technical efficiency of
enterprises, the impact of privatisation on the level of employment, investment and
export intensity.
• Work progressed to assess economic situation on the basis of indicators of overall
economic situation of Poland. A new method to evaluate those indicators – based on
data filtering – allowed to formulate more coherent conclusions and to establish the
economic position in the business cycle.
2009
Annual Report 2009
Research
• Research on households’ situation
• Issues related to the households’ decisions regarding income allocation for consumption,
investment and savings were comprehensively analysed. At the same time, also the
reallocation of household assets and liabilities in the context of the falling household
income were studied. Consumer sentiment and predictive ability of consumer situation
indicators were analysed in relation to retail sales and private consumption.
• Based on the data from Household Budget Surveys and Labour Force Survey, work
progressed to create a model to simulate the impact of developments in the labour
market on the potential repayment of mortgage loans and, consequently, on financial
system stability via mortgage loan channel.
10.4. Other macroeconomic research
• Studies of structural conditions of potential economic growth sought to:
• Explain the disproportion between the real wages and labour productivity whereby the
share of remuneration changed in the generated value added. The research addressed
potential influence of the structural changes of economy, microeconomic factors and
factors related to enterprise demographics and changes of the level of market
concentration on these processes.
• Analyses and studies of the public finance sector included:
• Ongoing analyses and forecasts of the condition of the state budget and other units of
the public finance sector. They fed into official opinions on fiscal policy.
• Studies on determinants of fiscal policy and the consequences of applying fiscal rules,
fiscal policy measures and public expenditure efficiency.
• As part of analysis of labour markets
• The NBP took active part in the international study of the impact of crisis on the reactions
of businesses in various EU countries under the ECB Wage Dynamics Network project.
The study included a survey carried out among businesses in order to evaluate flexibility
of businesses’ adjustments as regards prices, wages and use of the labour force. Data
collected could be compared with the corresponding data from surveys conducted in
other EU countries.
• Work progressed to develop the methodology to measure unit labour costs in national
economy with particular emphasis on the developments in this category within the
framework of market sectors of the national economy.
• Adjustment of labour force resources used in the production processes in various stages
of the business cycle was analysed in more detail. The research primarily addressed
labour hoarding in the initial stage of the economic slowdown.
• Analyses of regional labour markets continued. The study yielded a publication Wages,
Labour Productivity and Migrations in the Light of Studies Conducted in 2009.
109
2009
110
Research
N a t i o n a l B a n k o f P o l a n d
• As a part of examination of real property prices in Poland the Bank:
• Monitored the development of residential real property markets in 16 provincial cities.
The NBP developed system of monitoring housing prices:
– Conducted structural analyses of 16 housing markets in provincial cities,
– Developed a weighted-average index of housing prices on secondary market for major
city markets,
– Completed the first stage of research on hedonic housing price index, whereby the tool
showing the pricing tendencies on the 16 city markets in more detail will soon be
published.
– Made an attempt to measure the housing price bubbles in the 6 largest cities in Poland.
• Monitored major international markets in terms of threats and consequences of the
crises on real property markets.
• Developed the DSGE model for a small open economy with a banking sector.
The aim of the project was to build a dynamic stochastic model of general equilibrium which
could help evaluate the consequences of credit tightening and of the resulting financial crisis in the
years 2008–2009 for the real sphere of the Polish economy (mainly for the GDP).
• Conducted comparative analyses for selected economies and world regions.
• Provided analytical support for the process of investment of the NBP’s foreign exchange
reserves.
• Examined the impact of global crisis on Poland’s balance of payments.
• Optimised the methodology of establishing real effective exchange rates for the zloty.
10.5. Forecast and research
• Development of the main prognostic model NECMOD
The Bank introduced numerous changes in order to increase the accuracy of forecasts of
the main prognostic model in the context of crisis in the world financial markets and the
meltdown of the global economic climate. Changes primarily addressed the fields of:
modelling of the zloty rate, trading assets, external balance and the mechanism of
transmission of the movements in the exchange rate on the inflation and GDP.
• Development of the prognostic process
The analysis covered communication benefits as well as technical possibilities
and constraints of the publication of the interest rate path representing the NBP
expectations.
• Development of the tools used for making short-term inflation forecasts
2009
Annual Report 2009
Research
The NBP commenced works to optimise and analyse new tools used for inflation forecasts
and short-term evaluation of the decision-making atmosphere. A new methodology for
probabilistic forecast of inflation which uses Bayesian reasoning was applied.
• Development of tools used for making short-term GDP forecasts.
The NBP continued its work to improve existing tools. To this end the Bank established new
tools to develop forecasts of economic activity with high (monthly) frequency. GDP
forecasts based on four econometric models were included in the set of information
submitted on a current basis to the NBP Management Board and Monetary Policy Council.
• Project of building the DSGE model, intended to make forecasts of macroeconomic
phenomena in NBP.
The project seeks to build a dynamic stochastic model of general equilibrium destined to
generate forecasts of the main macroeconomic aggregates and to conduct conditional
forecasts assuming a certain course of selected variables. The model will support the
decision-making procedure of the Monetary Policy Council.
• Activity of the NBP Economic Research Committee.
In 2009, the NBP Management Board established the Economic Research Committee. Four
meetings of the Committee took place. At the meeting on 22 December 2009, the
Committee took a decision to announce the first ERC competition for research projects to
be conducted by NBP employees and persons from outside the NBP.
10.6. Research on full membership of the Republic of Poland in
the third stage of the Economic and Monetary Union
In 2009, the NBP continued research on full membership of the Republic of Poland in the
third stage of the EMU.
The Chairman of the Commission for the Euro Introduction (Management Board
Plenipotentiary for the euro introduction) established two task forces to develop a strategy of
entering the zloty into the ERM II and to choose a scenario of euro notes and coins introduction in
Poland.
Numerous publications on monetary integration were prepared:
– two papers (semi-annual) on the processes undergoing in euro area economies (Euro Area
Monitoring),
– information on real convergence in Poland,
– note on real and nominal convergence in the euro area,
– Financial and Economic Crisis versus Changes in the International Monetary System.
Implications for the euro area and Poland,
– The Use of FEER and BEER Models in Equilibrium Exchange Rates Estimates. Estimated
Euro/Zloty Equilibrium Exchange Rate between 1996:1 – 2009:1,
– Foreign Trade Competitiveness Channel in the EU Countries.
111
2009
112
Research
N a t i o n a l B a n k o f P o l a n d
16 February 2009 saw the publication of the Report on Full Membership of the Republic of
Poland in the Third Stage of the Economic and Monetary Union.
10.7. Poland in the Face of the World Economic Crisis report
In 2009, the NBP prepared a report Poland in the Face of the World Economic Crisis which
thoroughly analyses the challenges of economic policy in Poland in the context of the current
economic crisis. The report presents a diagnosis of the crisis, pointing to its causes and describing
its impact on the most important world economies. The issues of the impact of the crisis on the
Polish economy were discussed extensively, in particular in the context of the development of the
real economy situation, the public finance sector and the stability of the financial sector. Crisis
management actions conducted in Poland were summed up. The report describes the background
of the anti-crisis monetary policy, in particular within the scope of institutional conditions, both
domestic and foreign. It also projects possible scenarios of the economic climate development
vis-a-vis the outline of crisis management strategy. In the conclusions, directions of conducting
economic policy were proposed. These would seek to minimise the negative consequences of the
crisis on the one hand and build strong foundations for a sustainable growth in the future and
eliminate the co-called bottlenecks of the Polish economy on the other. The report suggests actions
concerning the strategy of consolidating public finances (i.e. rationalise social expenditure, extend
retirement age, expand tax base in particular), structural reforms of the goods and services market,
sectoral policy (in particular of the real property and construction sector), the use of EU funds and
improvement of investment financing, as well as the banking sector (i.e. maintain the active
dominant entities’ support for Polish branches of foreign banks, allow to supplement bank capitals,
provide banks with access to zloty and foreign currency liquidity and to hedge foreign exchange
risk and funding liquidity in the event of material shortages).
10.8. Academic conferences and seminars hosted by the NBP
In 2009, the NBP held the following international conferences:
• 5–6 June 2009 – conference ”20 Years after the Fall of the Socialist Economy.
Transformation, Economic Growth and Convergence in Poland and other Central and
Eastern European Countries”. The conference was dedicated to the assessment of the
transformations in Poland and other Central and Eastern European countries in the last 20
years. The aim of the conference was to evaluate the role that the countries in our region
play at the international arena and to exchange views on the current problems and
challenges of Central and Eastern European countries.
• 4 November 2009 – forecasting workshop ”Experiences and Challenges of Forecasting at
Central Banks”. The aim of the workshop was to exchange experiences concerning the
organisation of forecasting processes at central banks and the use of available
macroeconomic and macroeconometric tools. During the workshop papers were
presented and discussed related to building structural and statistical forecasting models,
also in the context of difficult access to data or parameter traceability, methodology of
model forecast risks assessment and predictability of economic upturns.
• 5–6 November 2009 – conference ”Publishing central bank forecasts in theory and
practice”. The aim of the conference was to present the latest research and practical
experiences in publishing forecasts by central banks, in particular publishing the interest
`
2009
Annual Report 2009
Research
rate path. From among over 30 papers submitted 12 articles were selected, covering the
following topics: experiences of central banks in publishing forecasts, accuracy of
macroeconomic forecasts, the impact of forecast publishing on financial markets,
advantages and disadvantages of publishing the future interest rate path, the impact of
transparency of monetary policy on prosperity.
• 10 November 2009 – seminar ”Global Economic Crisis and the International Monetary
System: Vulnerabilities and Solutions”. The aim of the conference was to discuss the
challenges awaiting the international monetary system in the medium and long term. The
program the sustainability of diminishing global imbalances seen in the course of the
recent crisis, the impact of stimulus packages on the increase in the cost of public debt
servicing, medium and long term outlook for currency exchange rates in developed
countries, as well as the outlook for increased importance of developed countries’
currencies in the world economy.
Moreover, 13 open-to-public academic seminars were organised. Their list is presented in
Annex 7.
113
Highlights in 2009
Bank employees:
• Published in well-renowned national and international periodicals. Four publications
included on the so-called Philadelphia list.
The NBP:
• Established the NBP Economic Research Committee and announced the first ERC
competition for research projects.
• Initiated numerous changes in forecasting tools and processes.
• Published Poland in the Face of the World Economic Crisis report.
2009
114 N a t i o n a l B a n k o f P o l a n d
Annual Report 2009
II
STRUKTURA
NARODOWEGO BANKU POLSKIEGO
11
STATISTICS40
40 Tasks in this field are performed in particular pursuant to Article 3 section 2 para. 7 and Article 23 of the Act on the
NBP, as well as the Act on Public Statistics of 29 June 1995 (Journal of Laws No 88, item 439).
2009
116
Statistics
N a t i o n a l B a n k o f P o l a n d
Planning and pursuance of the monetary policy requires a broad spectrum of high-quality
statistical data. The information published by the NBP is also used by external recipients. The NBP
submits reports to domestic and international institutions on a regular basis, including,
in particular, the European Central Bank.
In 2009, the NBP proceeded with harmonisation to bring its statistics into concert with
the EU requirements.
11.1. Standard tasks with respect to statistics, performed
by the NBP
As part of standard statistical tasks the NBP:
• collected, validated, processed and performed ongoing analysis of data regarding:
– the balance of payments, external debt and international investment position;
– balance-sheet data from banks and credit unions;
– interest rates applied by banks;
– supervisory and prudential reports (FINREP, COREP);
• interpreted monetary developments and balance of payments operations for the purpose
of ongoing monitoring of monetary developments;
• processed and analysed information about the financial situation of enterprises;
• developed methodology to compile the monetary and financial statistics, the balance of
payments, financial accounts and the general government statistics;
• modified the IT systems applied to collect and process statistical data.
The results of the works fed into statements, analytical materials and publications addressed
to both internal and external recipients. The most important of them included:
– quarterly reports on the balance of payments and the annual report on International
Investment Position of Poland;
– quarterly figures on Poland’s external debt and international investment position;
– monthly balance of payments data;
– monthly consolidated balance sheet of MFIs, including basic monetary aggregates (M3
money supply and its counterparts);
– quarterly financial accounts.
Statistical information was forwarded to domestic institutions such as: the Sejm, the Council
of Ministers, the Central Statistical Office, and to academic institutes. It was also submitted to the
ECB and other international organisations such as: the IMF, the World Bank, the OECD, the BIS
and the Eurostat.
2009
Annual Report 2009
Statistics
Moreover, in 2009, the NBP:
• Continued works on improving methods and procedures for seasonal adjustment of
statistical data, as part of the task force appointed by the ECB and the Eurostat (Task Force
on Seasonal Adjustment Tools User-Testing Group), which sought to develop a new
version of the Demetra+ application for the seasonal adjustment of data.
• Prepared methodological material related to the seasonal adjustment of statistical data.
• Continued methodological and analytical works and published a study on the epsilon
method to analyse the impact of macroeconomic factors on the consumer tendency
indices. Application of the epsilon method, which eliminated correlation between
regressors, allowed to isolate key factors influencing respondents’ opinion.
• Expanded cooperation with the BIS on the development of a common statistical database
for the central banks.
• Constructed a simultaneous economic activity index using the analytical model originally
developed for the American economy by Mariano and Murasawa (2003). Thanks to the
constructed index the Poland’s monthly GDP may be calculated with the use of a group of
macroeconomic data with mixed frequencies and unbalanced sample end by means of an
algorithm based on the highest reliability method and the modified Kalman filter.
• Analysed cyclical features of the Polish economy.
• Actively participated in the Euroindicators task force of the Eurostat. The group
coordinated work designed to publish key macroeconomic statistics (PEEIs), construct
parallel indices and leading indicators, as well as on the cyclical analysis of the nature of
business cycle fluctuations.
• Participated in actions undertaken by two tasks forces of the Eurostat: STNE and Metadata.
These were appointed to support the process of introducing new statistical standards in
domestic institutions concerned with the compilation of statistical data.
11.2. Statistical tasks derived from the NBP participation in
the ESCB and in other international institutions
In 2009, the NBP actively participated in all work concerning statistics and carried out by the
ECB and other European bodies. Accordingly, the Bank issued opinions on amendments to the
existing requirements, proposed by the ECB, and analysed the possibility of implementing the
proposed solutions by Polish reporting entities.
The NBP also carried out works towards the implementation of reporting solutions,
developed in the ESCB beforehand. To this end, the Bank participated in the works conducted by
the ECB Statistics Committee, including the Eurostat task forces and expert groups, the
Committee on Monetary, Financial and Balance of Payments Statistics (CMFB), and of the
Committee of European Banking Supervisors (CEBS).
Works on the monetary and financial statistics, financial accounts, the general government
sector, the real sector, balance of payments, as well as on the supervisory and prudential statistics
went further ahead and apace.
117
2009
118
Statistics
N a t i o n a l B a n k o f P o l a n d
The Bank also carried out research on the implemention of the SDMX-ML standard in the
NBP with regard to data collection, reporting, processing and exchange.
11.2.1. Monetary and financial statistics
The NBP submits to the ECB cyclical harmonised data of the consolidated balance sheet of
Monetary Financial Institutions (MFIs),41 as well as interest rate statistics.42 In 2009, the NBP set
out to implement in the pipeline the modified ECB requirements in the Polish banks’ reporting
covering this area.
The NBP also participated in works of the ECB and CEBS expert group towards reconciliation
of the monetary and supervisory statistics (Joint Expert Group on Reconciliation). The project
intends to harmonise definitions in those statistical areas. Looking ahead, this may contribute to
the reduction of reporting obligations of monetary financial institutions.
The NBP continued to develop the reporting system of investment funds and securitisation
entities. Data – acquired from these institutions through the PEGAZ system – will help the Bank
meet obligations towards the ECB, compile balance of payments, financial accounts, as well as
analyse data required for the implementation of the NBP’s monetary policy. In 2009, the NBP
developed an IT tool to be used for the acquisition of those data from reporting entities, set forth
the objectives for the created data processing and sharing system, and drew a detailed set of
instructions for investment fund societies. The amendments to the Act on the NBP,43 which allow
for the data to be acquired from entities other than banks, constitute an important step towards
reporting procedures based on the data acquired from those entities. More recently, as
a following step, came the regulation of the Minister of Finance44, drawn up in cooperation with
the Ministry of Finance, which commits the investment fund societies to transfer the data required
by the NBP.
The year 2009 saw technical and legal changes to the monetary reporting (concerning
balance sheet data and interest rate statistics) being in place – to be implemented in 2010. The BIS
system, used for collecting data necessary for the monetary policy purposes, will be extended with
data related to the meeting of new ECB requirements. Supervisory data, which are acquired in
FINREP and COREP reports, will be eliminated.
11.2.2. Financial accounts statistics
In January 2009, the NBP started to publish on regular basis on its website quarterly financial
accounts. This statistics was produced in accordance with principles included in the European
System of Accounts 1995 (ESA95) and with consideration to the ECB requirements. Financial
accounts were compiled on the basis of data from the NBP information systems and data obtained
from external sources (mainly from GUS and KNF).
41 Regulation No 25/2009 of the European Central Bank of 19 December 2008 concerning the balance sheet of the
monetary financial institutions sector (ECB/2008/32).
42 Regulation No 63/2002 of the European Central Bank of 20 December 2008 concerning statistics on interest rates
applied by monetary financial institutions to deposits and loans vis-á-vis households and non-financial corporations
(ECB/2001/18), amended by Regulation No 290/2009 of 31 March 2009 (ECB/2009/7).
43 Act of 5 March 2009 amending the Act on the NBP, and amending the Foreign Exchange Act (Journal of Laws No
69, item 589).
44 Regulation of the Minister of Finance of 16 December concerning the manner, the detailed scope and deadlines of
passing to the National Bank of Poland data necessary to define the monetary policy and periodical evaluations of
the state’s monetary situation (Journal of Laws No 221, item 1740).
2009
Annual Report 2009
Statistics
Work commenced aiming at the NBP meeting the Eurostat requirements concerning annual
financial accounts specified in the ESA Transmission Programme, starting from 2010. The taking
over of this task by the NBP from the GUS was agreed upon by the management of both
institutions. It will allow to ensure consistency of annual and monthly financial accounts transferred
to the ECB and Eurostat, respectively.
11.2.3. General government sector statistics
In 2009, experts of the GUS, the Ministry of Finance and the NBP advanced further
collaboration within the Working Group on General Government Statistics appointed by the GUS
President. Accordingly, the team developed methodology to determine revenues and expenditure
of the sector. Progress was also made on a manual describing the methodology of reconciliation
of the general government sector statistics with the EU standards.
11.2.4. Real sector statistics
In 2009, the NBP continued its activities as a member of the European Committee of Central
Balance Sheet Data Offices, as well as its Working Group BACH (Bank for the Accounts of
Companies Harmonised), and since 2009 – as a member of the Working Group of the ESD
(European Sectoral References Database). As a result, the BACH database was extended to include
aggregated data on non-financial entities required in cross-sections. In 2009, the NBP hosted
a meeting of the BACH group.
As the new European classification of economic activities NACE Rev. 2 entered into force in
2009 (Polish classification of economic activities of 2007), the data for the database had to be
processed according to the new classification.
In 2009, works progressed within the Working Group on General Economic Statistics (GES),
operating within the ECB structure. The NBP acted towards adjusting statistical standards to the
ECB requirements and necessary information concerning the real sphere was passed on.
11.2.5. Statistics of the balance of payments and the international
investment position
In 2009, the NBP continued to develop a new data collection and processing system for the
statistics of the balance of payments and the statistics of investment funds. The new system will
rely on data coming directly from the entities participating in international trade. The works under
the project Development of a New System for the Statistics of International Economic Relationships
(PEGAZ) have come to an end in the year 2010. The system will make it possible not only to meet
new ECB requirements concerning monthly balance of payments in a geographical breakdown and
quarterly investment position in a geographical breakdown, but it will also improve the quality of
analyses by increasing the number of available analytical cross-sections, and it will provide an easy
and quick access to data. Solutions applied in the new system will allow for this statistical field to
be adjusted to new IMF methodological standards.
In 2009, an IT system for collection and processing of collected data was constructed as part
of the development of the new data collection system. Two legal acts setting forth new reporting
principles were drawn up, i.e. the resolution of the NBP Management Board45 on bank data and,
119
45 Resolution No 78/2009 of the NBP Management Board dated 29 October 2009 on the procedure and detailed
principles of passing by banks to the NBP data necessary to prepare the balance of payments and the international
investment position (Official Journal of the NBP No 18, item 20).
2009
120
Statistics
N a t i o n a l B a n k o f P o l a n d
in cooperation with the Ministry of Finance, the regulation of the Minister of Finance46 concerning
data acquired from other entities. At the end of 2009, an information campaign addressed to
future reporting entities was launched and carried out thoroughly.
The NBP prepared and presented information on the size of the external debt due during the
year. This information was a reply to the existing demand for such data at the time of financial
crisis.
11.2.6. Supervisory and prudential statistics
FINREP and COREP reporting packages were modified as part of the development of the SIS
system, in which prudential reporting data necessary for the analysis of the banking sector stability
and for supervisory purposes are collected and published. The changes have been implemented
since March 2010. Employees of the NBP actively participated in the process of designing new
COREP and FINREP reporting packages. More notably, they took part in working groups appointed
by the CEBS and the ECB to perform these tasks. New reporting packages are to be implemented
in the EU Member States in the years 2012–2013.
The NBP submits also the international institutions (ECB, BIS, OECD) with reports presenting
data concerning supervisory statistics for the Polish banking sector derived from FINREP and COREP
reports.
Highlights in 2009
The NBP:
• Implemented a new data collection and processing system PEGAZ for the statistics of the
balance of payments and the statistics of investment funds.
• Developed legal acts necessary to acquire data for the purposes of the statistics of the
balance of payments, the statistics of investment funds, the monetary and financial
statistics, as well as the supervisory and prudential statistics.
• Launched cyclical publication of financial accounts.
• Introduced technical and legal changes to the monetary and financial statistics,
addressing the modified ECB requirements.
• Prepared methodical material in place related to the seasonal adjustment of statistical
data.
46 Regulation of the Minister of Finance of 23 October 2009 on passing to the National Bank of Poland data necessary
to prepare a balance sheet of payments and international investment position (Journal of Laws No 184, item 1437).
Annual Report 2009
12
LEGISLATIVE
FRAMEWORK47
47 Tasks in this field are performed in particular pursuant to Article 7, Article 12, Article 16 section 3, Article 17 section
3 para. 2 and section 4 of the Act on the NBP, as well as pursuant to the provisions of other acts in relation to
authorisations, included in them, for NBP governing bodies to pass legal acts.
2009
122
Legislative framework
N a t i o n a l B a n k o f P o l a n d
12.1. Legislation of NBP governing bodies
In 2009, the governing bodies of the National Bank of Poland issued 137 legal acts, including
25 by the President of the NBP, 97 by the NBP Management Board, and 15 by the Monetary Policy
Council. Of all the legal acts issued by the governing bodies of the NBP, 25 were published in
Monitor Polski (the Official Gazette of the Republic of Poland), and 25 were published in the
Official Journal of the National Bank of Poland.
12.2. The NBP collaboration with the state authorities on draft
normative and non-normative acts
Pursuant to the Act on the National Bank of Poland, the NBP cooperated with the state
authorities. Whereby the Bank issued opinions on draft normative and non-normative acts which
concerned economic policy and were relevant for the banking system. Within the framework of
this co-operation, the NBP contributed to the stability of the financial system, the safety and
development of the banking system, and the monetary stability.
In 2009, the NBP issued opinions on:
– 182 documents received in the course of inter-ministerial consultations,
– 1,020 documents received prior to their examination by the Committee of the Council of
Ministers.
The key draft legal acts on which the NBP issued opinions in 2009, which do not pertain
directly to the banking sector (legal acts on the banking sector are discussed in detail in section
12.3), include:
– Act of 2 April 2009 – which amended the Act on warranties and guarantees granted by
the State Treasury and particular persons and Act on Bank Gospodarstwa Krajowego
(Journal of Laws No 65/2009, item 545),
– Act of 18 June 2009 – which amended the Act on trading in financial instruments,48
– Act of 26 June 2009 - which amended the Act on land registers and mortgages (Journal
of Laws No 131/2009, item 1075),
– Act on public finance of 27 August 2009 and Act of 27 August 2009 – which
implemented provisions to the Act public finance (Journal of Laws No 157/2009, items
1240 and 1241),
– Act of 5 November 2009 on cooperative savings and credit unions; the Act was challenged
by the President of the Republic of Poland, who referred it to the Constitutional Tribunal
(a motion dated 30 November 2009, file number Kp 10/09),
– Act of 20 November 2009 – which amended the Act on registered pledge and the Pledge
Register (Journal of Laws No 215/2009, item 1663).
48 The Act was challenged by the President of the Republic of Poland by referring it to the Constitutional Tribunal
(a motion dated 24 July 2009).
2009
Annual Report 2009
Legislative framework
Moreover, the NBP issued opinions on 38 documents out of approximately 2,000 documents
received in relation to the meetings of the European Committee of the Council of Ministers
(KERM). The following deserve a special mention:
– Bill on amendments to the Act on the Bank Guarantee Fund,
– Draft Resolution of the Council of Ministers on the appointment of the National Euro
Coordination Committee, the Coordination Council and the Cross-institutional Task Forces
for the Preparation of the Euro Adoption by the Republic of Poland,
– Draft Opinion of the Government on the Proposal for a Regulation of the European
Parliament and of the Council on Community macro-prudential oversight of the financial
system and the establishment of a European System Risk Board,
– Draft Opinion of the Government on the Proposal for a Regulation of the European
Parliament and of the Council establishing a European Banking Authority,
– Draft Opinion of the Government on the Proposal for a Directive of the European
Parliament and of the Council amending Directives 1998/26/EC, 2002/87/EC, 2003/6/EC,
2003/41/EC, 2003/71/EC, 2004/39/EC, 2004/109/EC, 2005/60/EC, 2006/48/EC,
2006/49/EC and 2009/65/EC as regards the entitlements of the European Banking
Authority, the European Insurance and Occupational Pensions Authority and the European
Securities and Markets Authority,
– Draft Instruction for the meetings of the Committee of Permanent Representatives
COREPER II and the meetings of the Economic and Financial Affairs Council.
Moreover, the NBP passed to the Prime Minister an opinion on the document entitled
Convergence Programme. Update 2008.
In 2009, NBP employees participated in the works of 35 consultative conferences and legal
committees, as well as 137 meetings of Sejm committees and subcommittees, and meetings of
Senate committees.
The NBP also cooperated in the development of solutions regarding major areas of the
state’s operation by participating in the works of the following bodies: the Financial Stability
Committee, the Polish Financial Supervision Authority, the Trilateral Commission for Social and
Economic Affairs, the Financial Market Development Council, the Public Debt Management
Committee.
12.3. Draft legislation pertaining to the operation of the
banking system
Within the legislative process, the NBP issued opinions on:
• the bills which subsequently became:
– Act of 12 February 2009 – the Act on supporting Financial Institutions by the State
Treasury (Journal of Laws No 39/2009, item 308),
123
2009
124
Legislative framework
N a t i o n a l B a n k o f P o l a n d
– Act of 5 March 2009 on amendments to the Act on the National Bank of Poland and the
Foreign Exchange Act (Journal of Laws No 69/2009, item 589),49
– Act of 6 March 2009 on amendments to the Bankruptcy and Recovery Law, the Bank Act
on the Guarantee Fund and the Act on the National Court Register Act (Journal of Laws
No 53/2009, item 434),
– Act of 18 June 2009 – on amendments to the Act on co-operative savings and credit
unions, and the Banking Act (Journal of Laws No 127/2009, item 1045),
– Act of 25 June 2009 on amendments to the Act on preventing the introduction into
financial turnover of property values acquired from illegal or unrevealed sources and on
counteracting the financing of terrorism (Journal of Laws No 166/2009, item 1317),
– Act of 1 July 2009 on amendments to the Act on the operation of cooperative banks,
their associations and associating banks (Journal of Laws No 127/2009, item 1050),
– Act of 16 July 2009 on amendments to the Act on toll motorways and National Road Fund
and the Act on the National Bank of Poland (Journal of Laws No 143/2009, item 1164),
– Act of 16 July 2009 on amendments the Bank Guarantee Fund Act, and the Banking Act
(Journal of Laws No 144/2009, item 1176),
– Act of 23 October 2009 on amendments to the Act on Bank Gospodarstwa Krajowego
(Journal of Laws No 195/2009, item 1503).
• The following bills:
– Government bill on the recapitalisation of financial institutions,50
– Bill on currency options,
– Bill on payment services.
12.4. Consulting Community laws and draft national legislation
of the EU Member States
According to the provisions of the Treaty of Lisbon and the Statute of the ESCB, the ECB is
entrusted with the task of issuing opinions on Member State – and Community – level draft
legislation concerning the issue of currency, legal tenders, the status and activities of national
central banks, the monetary statistics, payment systems and financial institutions.
In 2009, the NBP as a member of the ESCB participated in the issuance of opinions on draft
legislation consulted with the ECB (100 in 2009). The key opinions included:
• With regard to Community draft legislation:
– Draft Regulation of the European Parliament and of the Council on cross-border
payments in the Community,
49 The Act was challenged by the President of the Republic of Poland by referring it to the Constitutional Tribunal
(a motion dated 24 July 2009).
50 Act of 12 February 2010.
2009
Annual Report 2009
Legislative framework
– Draft Directive of the European Parliament and of the Council on alternative investment
funds managers and amending Directives 2004/39/EC and 2009/.../EC,
– Draft amendment to Regulation (EC) No 332/2002 establishing a facility providing
medium-term financial assistance for Member States’ balances of payments,
– Draft amendment of the European Parliament and of the Council to Directives
2006/48/EC and 2006/49/EC as regards banks affiliated to central institutions, certain
own funds items, large exposures, supervisory arrangements, and crisis management,
– Proposal of a Regulation of the European Parliament and the Council on macro-
-prudential oversight of the financial system and establishing a European Systemic Risk
Board, and a proposal for a Council Decision entrusting the European Central Bank with
specific tasks concerning the functioning of the European Systemic Risk Board,
– draft legislation in the EU Member States concerning the construction of the European
supervision structure (Lamfalussy report), anti-crisis measures, the independence of
central banks and oversight of financial institutions.
• With regard to domestic draft legislation:
– Bill on the recapitalisation of financial institutions (ECB opinion issued at the request of
the Minister of Finance of the Republic of Poland),
– Bill amending the act on warranties and guarantees granted by the State Treasury and
particular persons, the Act on Bank Gospodarstwa Krajowego (ECB opinion issued at the
request of the Minister of Finance of the Republic of Poland),
– Bill amending the Act on trading in financial instruments (ECB opinion issued at the
request of the Speaker of the Sejm of the Republic of Poland),
– Bill amending the Act on cooperative savings and credit unions (ECB opinion issued at
the request of the Speaker of the Sejm of the Republic of Poland),
– Bill amending the Act on toll motorways and National Road Fund and the Act on the
National Bank of Poland (ECB opinion issued at the request of the Minister of Finance of
the Republic of Poland concerned the extension of the NBP’s entitlements with respect
to trading in securities),
– Bill amending to the Act on supporting financial institutions by the State Treasury (ECB
opinion issued at the request of the Minister of Finance of the Republic of Poland),
– Draft Estonian Regulation on measures seeking to stabilise the financial system,
– Draft Lithuanian Regulation on the State control of the operations of the Lithuanian
central bank,
– Bills on the central banks of: the Czech Republic, Hungary, Germany, Finland, Ireland,
Latvia, Lithuania,
– draft legislation insofar as the reproduction of banknotes and coins, withdrawal of
banknotes and coins from general circulation, as well as dealing with counterfeit
banknotes and coins in Hungary, Slovenia, Latvia, Malta, Germany, the Czech Republic,
Spain,
125
2009
126
Legislative framework
N a t i o n a l B a n k o f P o l a n d
– draft legislation introduced in some countries in order to overcome the results of the crisis,
e.g. on easier access to money in Sweden, on increasing the amount of funds to be
transferred by the central bank from its profit to the state budget (Lithuania and Latvia),
on the duty of passing funds from gold reserves taxation to the budget (Italy), on financial
aid granted to credit institutions in Ireland and Sweden.
12.5. Work on draft agreements
In 2009, the NBP participated in drafting the following agreements:
– between the ECB and the central banks of the ESCB on publishing financial data: CSDB
(Centralised Securities Database) and FMS (Financial Markets Statistics); the agreement
between the ECB and the central banks of the ESCB is a multilateral agreement, a party to
which is also the NBP,
– with the Ministry of Finance on: a bank account, trading in foreign currencies for the service
of foreign liabilities and receivables of the State Treasury and principles of performing this
service, principles of performing the function of the financial agent for the Polish Government
by the NBP for the purpose of carrying out credit and loan agreements concluded with
governments of other countries, within the interpretation of the Foreign Exchange Act,
– with the Wall Street System (TREMA),
– with Mennica Polska SA (Mint of Poland) and Polska Wytwórnia Papierów WartoĘciowych
SA (Polish Security Printing Works) with respect to providing coins and banknotes,
– between the NBP and the National Bank of the Republic of Belarus (co-operation
agreement),
– on a loan from the IMF (Flexible Credit Line) and for the IMF within the framework of its
subsidy,
– with the Deutsche Bundesbank (Consortium Agreement) with respect to the co-operation
for the National Bank of Ukraine,
– with foreign contractors on foreign exchange reserves management.
12.6. Work related to the adoption of the euro by Poland
In 2009, as part of preparations to adopt the euro by Poland the NBP worked on:
– Consulting the Draft Regulation of the Council of the EU on the verification of authenticity
of euro coins and dealing with euro coins unfit for circulation,
– Choosing an optimal scenario for introducing euro banknotes and coins in Poland and
preparing a strategy of including the zloty in the ERM II mechanism,
– Draft Agreement between the President of the National Bank of Poland and the Prime
Minister on the co-operation in preparations to the adoption of the euro by the Republic
of Poland,
2009
Annual Report 2009
Legislative framework
– Resolution of the Council of Ministers of 3 November 2009 concerning the appointment
of the National Euro Coordination Committee, the Coordination Council and the Cross-
-institutional Task Forces for the Preparation of the Euro Adoption by the Republic of
Poland.51
127
Highlights in 2009
The NBP:
• Participated in issuing opinions on bills and other documents insofar as the performance
of the economy and the banking system.
• Issued opinions on legal acts of the ECB, as well as on domestic and Council regulations
on the scope of responsibilities of the central bank.
51 Journal of Laws of 2009 No 195, item 1505.
2009
128 N a t i o n a l B a n k o f P o l a n d
Annual Report 2009 129
13
INTERNATIONAL
ACTIVITY52
52 Tasks in this field are performed in particular pursuant to Article 5, Article 11 section 2 and 3, Article 23 section 7 of
the Act on the NBP, as well as pursuant to the provisions of the statutes of the ECB and the ESCB.
2009
130
International activity
N a t i o n a l B a n k o f P o l a n d
13.1. Duties from Poland’s membership in the European Union
13.1.1. Co-operation within the European System of Central Banks
The NBP representatives participated in the works of the ESCB pari passu the representatives
of EU Member States which remain outside the euro area.
In 2009, the President of the NBP participated in quarterly meetings of the ECB General
Council (a decision-making body of the ECB). As part of its remits the General Council:
• issues opinions on legislative acts passed by the ECB Governing Council,
• contributes to the performance of statistical reporting responsibilities and
• participates determining irrevocable exchange rates in countries joining the euro area.
In 2009, the ECB General Council’s meetings addressed, i.a.:
• current and forecast macroeconomic situation of the EU Member States,
• ERM II,
• monitoring of central banks in relation to the so-called prohibition of financing from the
central bank’s funds (which follows from Article 101 of the EC Treaty) and prohibition of
privileged access (which follows from Article 102 of the EC Treaty),
• social dialogue within the ESCB,
• works on appointing a European System Risk Board,
• reconciliation of principles of state auditors’ access to ESCB documents.
The NBP representatives attended 12 Committees of the ESCB and numerous work groups
and task forces of the ESCB. On that opportunity they discussed and developed solutions
concerning:
– current fiscal situation in the EU states and on global financial markets,
– the implications of de Larosiére report for the operation of the ESCB’s Banking Supervision
Committee,
– the independence of the central bank in relation to the access to the ESCB’s documents
and data for state auditors,
– shareholders’ rights in the situation of bank reorganisation due to the financial crisis,
– experiences of new countries which adopted the euro,
– the operation of the TARGET2 system and works on TARGET2-Securities.
In 2009, the NBP continued its bilateral co-operation with the National Bank of Slovakia,
monitoring first experiences related to the introduction of the euro.
2009
Annual Report 2009
International activity
At the same time, in accordance with arrangements on the preparation of publications of
the ECB in national languages of the UE Member States, the NBP prepared Polish-language
versions of monthly bulletins and the ECB Annual Report 2008.
13.1.2. Collaboration with other Community bodies
In 2009, the NBP representatives took part in the work of the following EU bodies:
– ECOFIN (unofficial meetings),
– committees of the Council of the EU, including the Economic and Financial Committee,
– committees and working groups of the European Commission,53
– the Committee for Monetary, Financial and Balance of Payments Statistics (CMFB), as well
as working groups of the Eurostat.
13.1.3. Preparations for the Polish Presidency in the Council of the European
Union
As the Government initiated preparations to the oncoming Polish Presidency in the Council
of the EU in the second half of 2011, in 2009, the NBP joined the process of preparations,
coordinated by the Office of the Committee for European Integration, inasmuch as it was engaged
in the works of the Council of the EU. Accordingly, the Bank issued opinions on documents
considered by the European Committee of the Council of Ministers (KERM) concerning Poland’s
preparations to preside in the Council of the EU, including the Schedule of Formal and Informal
Meetings during the Polish Presidency of the EU Council.
As part of its participation in the preparations, the NBP also co-operated with the Ministry
of Finance. Specifically, the Bank organised an unofficial meeting of the Economic and Financial
Affairs Council (ECOFIN) to be held during the Polish presidency.
13.2. Collaboration with international economic and financial
institutions
13.2.1. Organisation for Economic Co-operation and Development (OECD)
In the performance of tasks resulting from Poland’s membership in the OECD, the NBP
cooperated with the National Coordinator of Co-operation between Poland and the OECD, the
Ministry of Economy, the Ministry of Finance and the Poland’s Permanent Delegation to the OECD.
In June and November 2009, missions of the OECD Secretariat visited Poland to prepare the
11th Review of the Polish Economy, centred around globalisation. The agenda of the meetings
131
53 PAN II group of the European Commission, Counterfeit Coins Experts Group, Counterfeit Coins Experts Group within
the European Anti-fraud Office (OLAF), Working Group on Ageing, Working Group on Economic Forecast, Working
Group on Bank for the Accounts of Companies Harmonised, European Committee of Central Balance Sheet Data
Offices (ECCBSO), Working Group on Communication on the Euro and the EMU – “Dir Com”.
2009
132
International activity
N a t i o n a l B a n k o f P o l a n d
with NBP experts covered: the current economic climate, monetary policy, accession to the euro
area and situation in the banking sector.
As part of co-operation with the OECD, the representatives of the National Bank of Poland
participated in the following activities:
– the meetings of the Inter-Ministerial Team for the Organisation for Economic Co-operation
and Development (OECD) at the Ministry of Economy,
– the meetings of the problem committees and OECD working parties (including the
Economic Policy Committee, Working Group on Short-term Economic Prospects, Working
Group on Macroeconomic and Structural Policy Analysis, Committee on Financial Markets,
Working Group on Financial Statistics),
– the conference in the frame of OECD International Network on Financial Education
initiative.
13.2.2. The World Bank Group and the International Monetary Fund
As part of co-operation with the World Bank Group, in 2009, the representatives of NBP
participated in:
• The spring meetings of the Board of Governors of the World Bank (WB) and the
International Monetary Fund (IMF) which were held in Washington in April 2009. The
discussion at the meeting primarily addressed the impact of economic crisis on the world
economy and developing countries as well as crisis management activities of the WB
Group and the IMF.
• The annual meetings of the Board of Governors of the WB and the IMF which were held
in Istanbul in October 2009. During the meetings the following topics were discussed: the
condition and outlook for development of the world economy, impact of the world
economic crisis on the general public, actions for the stability of the financial system and
the reform of the WB and the IMF.
In May 2009, the President of the NBP held a meeting with the President of the World Bank
to discuss the economic climate in Central Europe in the context of the world economic crisis and
further co-operation between the World Bank Group and Poland.
As part of co-operation with the IMF, in 2009, the representatives of NBP participated in:
– works which resulted in IMF placing SDR 13,690,000.0 thousand at the disposal of Poland
under the Flexible Credit Line in May 2009;
– consultations concerning the World Bank strategy for Poland for the years 2009–2013
(Country Partnership Strategy 2009–2013) adopted by the World Bank’s Board of
Executive Directors in June 2009;
– the IMF project Financial Soundness Indicators, designed to develop an international data
base on financial stability. The program entered the implementation stage and, in 2009,
particular countries including Poland began a regular transfer of banking sector stability
indicators to the data base.
2009
Annual Report 2009
International activity
13.2.3. The European Bank for Reconstruction and Development
The 18th Annual Meeting of the Board of Governors of the European Bank for
Reconstruction and Development (EBRD) was held in London in May 2009. The NBP supported the
measures to counteract the crisis, including the increase in financial resources for EBRD operations.
Furthermore:
• In January 2009, the NBP hosted a conference “Growth in Transition” on the opportunity
of presenting EBRD’s cyclical publication Transition Report 2008. Subsequent issue of the
report entitled Transition in Crisis? was published in November 2009.
• The NBP participated in the consultations regarding the EBRD strategy for Poland adopted
by the EBRD Board of Directors in September 2009.
13.2.4. Co-operation with international financial institutions
December 2009 saw the second meeting convened on the initiative of the NBP between
the representatives of the Republic of Poland to international financial institutions (WB, IMF,
EBRD) and the representatives of the Ministry of Finance, Ministry of Economy, Ministry of
Foreign Affairs and the NBP . The agenda covered: changes in the global financial architecture,
reforms of the WB and the IMF, Poland’s bilateral loan to the IMF, the exchange of information
and coordination of positions. Poland’s expectations with regard to further access to funds
offered by the WB and the EBRD and Poland’s preparations to preside in the Council of the EU
in the second half of 2011.
13.2.5. The Bank for International Settlements (BIS)
In 2009, the President of the NBP took part in six BIS meetings. These primarily addressed
the implications of the world economic crisis for the activity of central banks, including monetary
policy and stability of the financial system.
The annual General Meeting of BIS Shareholders on 29 June 2009 adopted the 79th Annual
Report and approved the balance sheet of the Bank as at 31 March 2009. The profit and loss
account which indicated a net profit of SDR 446.1 million was also approved. The NBP received
the dividend amounting to SDR 2.12 million.
13.2.6. The International Bank for Economic Co-operation (IBEC)
In 2009, the representatives of the NBP participated in the meetings of the IBEC Council and
in working meetings. On that opportunity the current activity and potential reorganisation of IBEC
were discussed. Having read the unqualified opinion of the auditor who examined its financial
statements for 2008, the IBEC Council approved the balance sheet of the Bank and its profit.
13.3. Technical and training assistance for other central banks
Technical assistance offered by the National Bank of Poland: Technical Co-operation for
Transition initiative continued to enjoy great interest of central banks in countries undergoing
transformation.
133
2009
134
International activity
N a t i o n a l B a n k o f P o l a n d
New recipients include central banks of several countries in Africa and South and Central
America (Chile, Egypt, Kenya, Morocco, Paraguay and Tunisia). So far, 22 central banks benefited
from the technical assistance of the NBP, currently that number increased to 28.
In 2009, the NBP carried out:
– 19 study visits (Albania, Armenia, Azerbaijan, Chile, Georgia, Indonesia, Kenya, South
Korea, Moldova, Serbia, Russia, Ukraine),
– 5 traineeships (Albania, Armenia, Tunisia, Vietnam),
– 19 expert visits (Azerbaijan, Belarus, Georgia, Kyrgyzstan, Serbia, Russia, Tajikistan, Tunisia,
Vietnam),
– 3 seminars and 5 workshops concerning internal audit, financial risk management,
payment system, safety system and management of competences in a central bank.
The range of topics covered during the training and study visits included: internal audit, issue
of currency, accounting (and bookkeeping), monetary policy (and monetary policy instruments),
financial stability, payment system, foreign exchange reserves management, human resources
management, central bank safety, economic education, public relations and IT systems.
In total, 214 people (including the expert visits) benefited from the technical and training
assistance offered by the NBP in 2009.
The NBP representatives were engaged in technical assistance projects implemented by other
European institutions: TAIEX – Technical Assistance and Information Exchange Office – an advisory
and informative instrument of the European Commission – to the benefit of the Central Bank of
Tunisia and ECB to the benefit of the National Bank of Serbia.
In October 2009, the Agreement on Co-operation between the National Bank of Poland and
the National Bank of the Republic of Belarus was signed. It determines the rules and forms of co-
-operation between the two banks with regard to technical assistance.
December 2009 saw the completion of the process of negotiations and preparations with
respect to the twinning project implemented jointly by the NBP and Deutsche Bundesbank to the
benefit of the National Bank of Ukraine.
At the same time, the NBP Management Board adopted the new Strategy for the
Development of Technical Assistance Offered by the National Bank of Poland in the Years
2010–2012 which determines the objectives and methods of pursuance of the tasks exhibiting the
significance of the NBP in the international economic debate and its role in the expanding
international co-operation implemented in the form of advising selected banks in non-EU countries
undergoing economic transformation.
Highlights in 2009
The NBP:
• Adopted new Strategy for the Development of Technical Assistance Offered by
the National Bank of Poland in the Years 2010–2012.
• Organised meetings of the representatives of Poland to international financial institutions
(WB, IMF, EBRD).
• Joined preparations to Poland’s Presidency in the Council of the EU.
Annual Report 2009
14
INTERNAL DEVELOPMENT OF THE NBP54
54 The responsibilities in this field are exercised, i.a. pursuant to Articles 7 and 8, 10 and 11, Article 17 section 1, section
3 para. 2 and section 4, as well as Articles 56 and 57 of the Act on the NBP.
2009
136
Internal development of the NBP
N a t i o n a l B a n k o f P o l a n d
14.1. Human resources management
14.1.1. NBP employment
In 2009, the average employment at the NBP stood at 3,770 full-time posts and declined by
199 posts, i.e. 5.0%, as compared to 2008. By comparison, the number of staff at regional
branches declined by 259 posts. Due to the implementation of the Concept of Optimizing
Operations of the Regional Branches, improvements have been introduced in the following fields:
– the use of SGW (System Gospodarki Własnej – Internal Operations System);
– customer service;
– organisation of public procurements;
– operation of the third-party external cash desk service.
Moreover, the administration of holiday centres located in Ruciane Nida and Zakopane was
transferred from regional branches to the Support Services Office.
The staff at the NBP Head Office increased by 34 full-time posts, on average, due to:
– increased workload at the NBP Head Office, in the wake of organisational changes (on 15
January, pursuant to Resolution No 6/2009 of the NBP Management Board of 8 January
2009, the Department of Information and Public Relations was dissolved and the Public
Relations and Marketing Department, together with the Education and Publishing
Department, were established in its place; on 1 April 2009, pursuant to Resolution No
27/2009 of the NBP Management Board of 26 March 2009, the Team for the NBP
Management Board Plenipotentiary for restructuring the management system in the NBP
was appointed; on 3 August 2009, the Team for Strategic Management and the Team for
the NBP Management Board Plenipotentiary for restructuring the management system in
the NBP were dismissed and pursuant to the Resolution No 60/2009 of 30 July 2009, the
Strategic Management Department was appointed);
– centralisation of personnel and payroll tasks;
– centralisation in the field of SGW;
– appointment of analytical and forecast teams of the Economic Institute, located in the NBP
regional branches. Centres have been established in Poznań, Krakow and ，ode. The
purpose of this network of centres is to involve the representatives of universities from
outside Warsaw in analytical and research works for the NBP55.
55 These centres carry out analyses in the field of monetary policy and research tasks resulting from the academic profile
of their staff. Every month, the centre in Krakow prepares materials for the MPC, “Probabilistic inflation prognosis
and the assessment of the decision-making atmosphere”. The centre in ，ode cooperates with the Price and Inflation
Office in the scope of expert inflation forecast, prepared for the MPC, and implements other forecast tasks. The
centre in Poznań, established at the end of 2009, cooperated with the Research Office as regards the scope of the
monetary policy transmission mechanism, primarily taking into account the impact of monetary impulses on the yield
curve.
2009
Annual Report 2009
Internal development of the NBP
Table 12
Changes in the NBP average employment level in years 2005–2009 (including the GINB
employees)
Source: NBP data.
Table 13
Changes in the NBP average employment level in years 2005–2009 (excluding the GINB
employees)
Source: NBP data.
In 2009, personnel expenses along with compensations and mark-ups rose by 4.1%
as compared to 2008.
14.1.2. Developing staff qualifications
In pursuit of its human resources policy the NBP principally seeks to promote the employees’
development and raise their professional qualifications. In order to increase the effectiveness of
those measures, the Bank determines the needs and selects the methods of skills development on
a one-by-one principle.
The main objectives of training activity in 2009, stemming from the National Bank of Poland
Plan of Activity 2007–2009, included the provision of professional, competent and reliable
personnel and the best possible preparation of employees for the operation of the NBP within the
ESCB structure. Thanks to continuation of training activities the NBP as an organisation could
efficiently perform its activities.
The year 2009 witnessed three trainings, on average, per one employee, sustaining the level
from 2008. The National Bank of Poland assesses the effectiveness of the trainings; in a survey, the
participants of domestic trainings assess the technical knowledge of the coaches, their teaching
skills, the training syllabus (taking into account its usefulness), training materials, as well as the
training organisation. The average mark awarded in 2009 was 4.4.
The participants of foreign trainings within 14 days from their return to Poland prepare
a report, with a technical assessment, supplemented with a description of the training syllabus.
137
Item 2005 2006
2006
–2005
2007
2007
–2006
2008
2008
–2007
2009
2009
–2008
2009
–2005
Total 4 627.1
2 008.0
2 344.0
275.1
4 481.2
1 999.0
2 209.0
273.2
-145.9
-9.0
-135.0
-1.9
4 424.0
1 997.0
2 156.0
271.0
-57.2
-2.0
-53.0
-2.2
3 968.4
1 603.8
2 100.9
263.7
-455.6
-393.2
-55.1
-7.4
3 769.7
1 638.1
1 842.0
289.6
-198.7
34.3
-259.0
25.9
-857.4
-369.9
-502.1
14.5
Head Office
Regional branches
SSO
Item 2005 2006
2006
–2005
2007
2007
–2006
2008
2008
–2007
2009
2009
–2008
2009
–2005
Total 4 167.9
1 548.8
2 344.0
275.1
4 045.4
1 563.2
2 209.0
273.2
-122.5
14.4
-135.0
-1.9
3 991.3
1 564.3
2 156.0
271.0
-54.1
1.1
-53.0
-2.2
3 968.4
1 603.8
2 100.9
263.7
-22.9
39.5
-55.1
-7.4
3 769.7
1 638.1
1 842.0
289.6
-198.7
34.3
-259.0
25.9
-393.3
89.3
-502.1
14.5
Head Office
Regional branches
SSO
2009
138
Internal development of the NBP
N a t i o n a l B a n k o f P o l a n d
14.2. Organisational changes
In 2009, the following organisational changes were introduced at the NBP:
• On 15 January 2009, the Department of Information and Public Relations was dissolved
and the following two departments were established: the Public Relations and Marketing
Department, entrusted with a task to develop the image policy of the NBP, and the
Education and Publishing Department, entrusted with a task to develop the educational
concept of the NBP, implement the bank’s new educational activities and co-finance
initiatives of this kind, organised by external entities;
• On 3 August 2009, the Strategic Management Department was established. The new
organisation unit consolidated all the tasks attendant on strategic management, process
management, project management and coordinating and controlling the process of
preparation and implementation of operational plans by NBP departments.
Moreover, at the end of 2008, in contemplation of introduction of euro in Poland, the NBP
Management Board appointed the NBP Management Board Plenipotentiary for the euro
introduction. In January 2009, the Commission for the Euro Introduction was appointed by
decision of the President of the NBP.
14.3. Strategic management
The year 2009 continued implementation of the strategic management principles. These
were specified in the Strategy for the Management of the National Bank of Poland in the Years
2009–2012, adopted by the NBP Management Board in October 2008. Whereas the adopted
Strategy broadly assumed to rationalise the use of the resources of the NBP, it also continued to
effectively implement the bank’s chief aims, resulting from the applicable provisions.
In the process of implementation of the Strategy, in 2009 Q4, modifications of the
management procedures of the NBP commenced, leading to integration of the process and project
approach and to the launching of strategic controlling.
In December 2009, the NBP Management Board accepted the Strategy for execution in the
form of operational plans for individual departments of the NBP Head Office, together with
measures of task efficiency. This will enable the monitoring of the degree of completion of
strategic goals, defined in measurable terms in the plans of individual organisational units.
As a result of complex works preparing the NBP for the introduction of the new functional
model, the principles of process management were designed. These comprised the methodology
of description, measurement and modelling of the processes at the Bank. Moreover, an analysis of
tools used in process definition and mapping was carried out and the owners of individual
processes were specified, together with their scope of competence.
Moreover, in 2009, preparations were under way to introduce systemic project
management; one of the basic methods to introduce changes in the organisation. To this end,
a project management methodology in the NBP was drafted, to define the scaling criteria for
methodologies inherent in specific types of projects, requirements regarding the resources and
their implementation time. Beginning from 2010 the NBP will carry out its projects designed to
implement strategic goals in accordance with new principles.
2009
Annual Report 2009
Internal development of the NBP
As part of the activities aimed to increase the effectiveness and efficiency of process
management and reduce operating costs, works are under way to reorganise work and restructure
the Bank’s Head Office. The aim of the prepared changes is to increase the functional efficiency of
the NBP by focusing its potential on achieving the most important, statutory tasks for which the
Bank had been appointed.
14.4. Operational risk management
In 2009, within the scope of operational risk management, the NBP sought to implement
two major tasks:
– describe and analyse the main processes of the NBP for the purpose of risk management;
– select and implement an IT system for operational risk management.
In relation to the latter task, an agreement for the purchase and implementation of a system
supporting the operational risk management at the NBP was signed in September 2009. October
2009 saw the beginning of the implementation process. The project reached its final point at the
end of 2010 Q1.
Moreover, as part of activities related to the development of the Risk Management System
(RMS) the Bank sought to:
– validate methods, procedures and tools applied in the RMS, including the development of
the KRI (Key Risk Indicators) methodology and improvements in the functioning of the Risk
Base;
– continue to develop and implement quantitative methods of operational risk
management;
– test and develop the Business Continuity Plan (BCP) at the NBP;
– develop the NBP profile tools and risk maps;
– monitor and analyse the level of operational risk on an ongoing basis;
– undertake necessary actions to reduce the operational risk at the NBP and monitor their
implementation;
– hold training and consultations regarding theory and practice on operational risk
management for the Risk Managers and their deputies.
The implementation of the above tasks was coordinated and supervised by the Commission
for Risk Management.
14.5. IT support for the banking system and the NBP
In 2009, the following information technology activities were carried out:
• NBPCollect system, offering the “speed collect” service to the customers of the enbepe
Electronic Banking, was implemented. The project comprised the development of mass
139
2009
140
Internal development of the NBP
N a t i o n a l B a n k o f P o l a n d
payments system (NBPCollect) to process a specialised type of clearing service, offered to
those holders of accounts at the NBP who handle a large number of payers or types of
payments. The project addressed approx. 3,500 NBP customers in the field of public
administration (comprising mainly courts, prosecutors’ offices and tax offices), and resulted
from the changes in the principles of servicing deposit sums accounts using the “speed
collect” function.
• The first stage of introduction of the Kolekcjoner system was completed and changes in
NBP systems (SES and NBPCollect) were implemented; the changes were related to the
implementation of Kolekcjoner. The project was launched in 2009 Q3 and the system itself
was introduced in January 2010 (the first auction took place on 11–14 January 2010).
The aim of this project was to support the new distribution model for collector coins and
notes, adopted by the NBP Management Board.
• The PAR-BARP system – Business Objects Analytical and Reporting Platform for BARP
Labour Markets Survey Application was put into service. The aim of this task was to make
the analytical and reporting environment (using the Business Objects tool) available to NBP
analysts to the extent enabling the analyses and reports in the field of data concerning
labour markets in individual regions and nationwide. The existing NBP technical and
software infrastructure fed into the development of this system.
• The NBP modernised its server infrastructure. The Bank replaced the existing server
hardware (34 servers at the Head Office and the Computer Training Centre) and
developed the server infrastructure (expansion of IBM servers, optimisation of usage of ZSK
servers, modifications of SuperDome servers, migration of SUN – SWIFT and Reuters
servers). Moreover, the Oracle critical IT systems databases has been migrated to the
version 10g. The abovementioned tasks resulted from diverse premises:
• The main goal was to ensure the technological safety of the IT environment of the
National Bank of Poland;
• Migration of Oracle critical IT systems databases to version 10g resulted from the
discontinuation of Oracle’s support of previous versions of databases of NBP critical
systems. Without this support critical database errors were more likely to occur in the
process of introducing changes into the IT systems (e.g. introduction of a new
functionality).
• Expansion of IBM servers was related to ensuring adequate infrastructure for SES and
PEGAZ IT systems, which needed increased capacity.
• 34 servers has been replaced at the Head Office and the Computer Training Centre due
to the necessity of replacing older hardware for different NBP critical systems (SWIFT
servers, resource servers (terminal services roles, domain controller) and hardware at
regional branches). Replacement of hardware together with purchase of technical
assistance was less cost-intensive than sole purchase of technical assistance for hardware
owned by the NBP.
• Optimisation of usage of ZSK servers meant an increase in efficiency of previously used
UNIX environment. The scope of works included transforming hardware partitions into
software (virtual – v-pair) partitions. The above works improved the efficiency of the UNIX
environment.
• Modifications of SuperDome server environment involved purchase of smaller servers
and transfer of some UNIX environments to new servers in order to ensure appropriate
efficiency.
2009
Annual Report 2009
Internal development of the NBP
• Migration of SUN (SWIFT, Reuters) servers was related to the end of previous three-year
support for the old servers. The selected solution – purchase of new hardware, together
with maintenance – proved to be a less cost-intensive solution than sole purchase of
technical assistance for the previously used environment.
• Works related to the PEGAZ system, put into service in May 2010, continued. In 2009, the
system was developed and the user portal tests commenced. The aim of the project was
to develop a modern statistical system, responding to the current and future needs as
regards the balance of payments statistics and international investment position. The
project involved the development of an IT system, based on collection of electronic data
directly from business entities with foreign trade turnover, which currently allowed to
abandon paper-based reporting. The PEGAZ system is at present the largest NBP system as
far as the number of reporting entities is concerned.
• Changes to the existing IT systems were introduced, both in the scope of offering new
services and restructuring of IT system operations. The main activities were related to the
centralisation of SGW, introduction of modifications to SORBNET-EURO (due to the
commencement of processing in the TARGET2 system by the National Clearing House),
implementation of the Base of Internal Files system, update of customer software of the
VideoTEL module to version 5.5 of the enbepe Electronic Banking system for the holders
of NBP accounts. ELBON2 system (replacing the previous ELBON system) was introduced
and the securities handling system was connected to the new clearing system of the
National Depository for Securities SA. The reasons for introducing the foregoing changes
were as follows:
– centralisation of the SGW system was due to the applications of the Commission for
restructuring the activity of regional branches and changes in business processes mapped
in the SGW system;
– modifications in the SORBNET-EURO system were related to the necessary adjustments
of the system to the requirements of KIR and processing of data from KIR in TARGET2
system;
– update of customer software of the VideoTEL module to version 5.5 was performed in
order to adjust the previous version of VideoTEL module (version 5.0) to operating in MS
Vista system; at the moment, more and more institutions cooperating with the NBP tend
to install Vista in their personal computers;
– implementation of ELBON2 system (commenced in May 2008) was due to the
modernisation of the existing ELBON system by introduction of additional functionalities
(e.g. foreign customer service – service offered in English) and to compliance with the
requirements presented by the Ministry of Finance.
The year 2009 saw the completion of the first stage of the project involving implementation
of the new system for foreign exchange reserve management. The new configuration will allow to
implement the second stage of the project in 2010 in order to obtain front, middle and back office
functionalities, and introduce new investment instruments. This task was carried out under
the project for introduction of the WallStreet Suite system v. 7.2. The project was implemented
due to:
– the necessity to expand the usefulness of the system in the scope of front, back and
middle office functions, as well as in the scope of accounting;
– harmonisation and standardisation of projects related to foreign exchange reserve
management as a part of future participation in ERM2 and in Eurosystem (Wallstreet
Suite system v. 7.2 will be used for managing foreign exchange reserves of the ECB);
141
2009
142
Internal development of the NBP
N a t i o n a l B a n k o f P o l a n d
– termination of Wall Street Systems (WSS) support for Finance Kit 6.0;
– termination of Microsoft extended technical assistance for Windows 2000 and MS SQL
2000, on which Finance Kit system is constructed (hence the need to migrate
to Windows 2005 (2008) Server and MS SQL 2005 (2008).
Moreover, a new service agreement was executed with Sygnity SA. The new instrument
contains provisions which are much more advantageous to the NBP. As a result, the NBP has
gained upper hand in the development of the system as well as the option to reduce the
maintenance costs of the IT system. The agreement was made on 29 September 2009 for a period
of three years, with the aim to:
– gain more control over introduction of changes to the ZSK system;
– improve security of the ZSK system by adequate wording of the provisions regarding the
contractor’s liability for the quality of provided services (SLA) and contractual penalties for
failure to sustain the quality of provided services;
– optimise costs of the provided services;
– optimise notice periods for the parts of the agreement related to the services which may
be taken over by NBP employees upon receiving adequate training and becoming
accustomed to these services.
14.6. Safety and security
In 2009, the NBP strove to maintain and guarantee adequate security standards, concerning
in particular:
– adjustment of security policy at the NBP to the risk management system at the NBP;
– IT systems security management;
– protection of classified information and personal details;
– provision of cryptographic and certification services;
– security of facilities, persons and monetary assets, as well as ensuring business continuity.
As part of implementation of the tasks of the National Certification Centre, the Bank
completed the process of exchanging the certificate of the Minister of Economy in the system of
domestic infrastructure of the public key was and commenced the publication of Polish TSL list on
the NCC website – a tool facilitating the interoperability of electronic signatures within the
European Union.
14.7. Internal audit
In 2009, the NBP conducted 43 internal audits covering 35 topics, including 1 audit at the
request of the ESCB’s Internal Auditors Committee and 1 advisory task. The audits addressed
works of 18 organisational units of the Head Office and 10 regional branches of the NBP. These
resulted in conclusions aimed at improving the applied organisational solutions.
2009
Annual Report 2009
Internal development of the NBP
Alongside with carrying out audit tasks, in 2009, NBP internal audit took part in international
co-operation and experience exchange, organised outbound meetings of the ESCB Internal
Auditors Committee in Krakow.
Furthermore, in 2009, in pursuit of its objectives internal audit:
– developed the concept of the compliance function for the NBP;
– developed the principles of advisory service provision by the Internal Audit Department.
14.8. Other activities
The year 2009 saw the continuation of activities aimed at collection of the NBP’s receivables
from Bank Handlowo-Kredytowy SA – BHK SA (in liquidation since 1992). As a result, in 2009, the
NBP recovered a collection of works of art (including 34 paintings, graphics and drawings) with
value of PLN 6,325.6 thousand. Upon the acquisition of the works by the NBP, the National
Museum organised an exhibition at which they were presented to the public.
Since the liquidation process of BHK SA commenced, the NBP has reclaimed PLN 651,459.2
thousand. The outstanding sum, due to accrued interest, amounts to PLN 1,261,886.6 thousand
(interest in the amount of PLN 78,782.9 thousand accrued until the Bank was put in liquidation
and interest in the amount of PLN 1,183,103.7 thousand accrued after that date). The NBP
continues the process of recovering its receivables from BHK SA (in liquidation)
143
Highlights in 2009
The NBP:
• Reorganised activities of NBP regional branches.
• Continued implementation of the strategic management principles determined in the
Strategy for the Management of the National Bank of Poland in Years 2009–2012.
• Modernised the IT infrastructure in order to enable the provision of new services and
restructuring of the operations of IT systems at the NBP.
2009
144 N a t i o n a l B a n k o f P o l a n d
Annual Report 2009
15
INDEPENDENT AUDITOR’S OPINION AND CONDENSED
FINANCIAL STATEMENTS OF THE NATIONAL BANK OF
POLAND AS AT 31 DECEMBER 200956
56 The responsibilities in this field are exercised, i.a., in pursuance with Chapter 10 (Art. 60–70) of the Act on the NBP.
2009
146
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
15.1. Independent auditor’s opinion
The financial statements of the National Bank of Poland were drawn up as at
31 December 2009.
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
15.2. Legal principles for maintaining accountancy records
at the NBP
The financial statements of the NBP were prepared on the basis of accounting books
complying with the following regulations:
– the Act on the National Bank of Poland of 29 August 1997, as amended;
– Resolution No. 16/2003 of the Monetary Policy Council of 16 December 2003 on
the accounting principles, the structure of assets and liabilities in the balance sheet and
the profit and loss account of the National Bank of Poland as amended;
– Resolution No. 63/2008 of the NBP Management Board of 11 December 2008 on the way
of performing tasks related to accounting at the National Bank of Poland, as amended;
– Resolution No. 9/2006 of the Monetary Policy Council of 19 December 2006 on
the principles for creating and releasing a provision against the foreign exchange rate risk
of the zloty at the National Bank of Poland,
– Resolution No. 29/2007 of the NBP Management Board of 25 October 2007 on
the management of fixed assets’ components in the National Bank of Poland as amended.
15.3. Basic accounting principles at the NBP
Pursuant to Article 67 of the Act on the NBP, the NBP accounting principles should conform
to the standards applied in the European System of Central Banks. Basic accounting principles
adhered to at the NBP include:
The principle of true and fair view
The NBP applies accounting principles so as to ensure a true and fair view of the economic
and financial standing and the financial performance, in accordance with the true nature and
economic importance of economic events.
The going concern principle
Pursuant to Article 58 of the Act on the NBP, the NBP shall not be declared bankrupt.
The prudence principle
The valuation of assets and liabilities and recognition of revenues as part of the profit and
loss account is performed prudently. In accordance with this principle, unrealised gains are not
recognised as income in the profit and loss account, but are recorded as revaluation difference in
the liabilities side of the balance sheet. At the same time, unrealised losses are taken at year-end
to the profit and loss account. Unrealised losses related to a respective holding of debt securities,
foreign currency or gold are not netted with unrealised gains on another holding of debt securities,
foreign currency or gold.
147
The materiality principle
A simplified method for grouping economic operations on accounts, for the valuation of
assets and liabilities and for the recognition of income and expense may be applied at the NBP,
provided that it does not adversely affect the true and fair view of the material and financial
standing and does not significantly affect the financial performance.
The comparability principle
The accounting principles are applied throughout. In subsequent financial years,
the grouping of economic operations in accounts, the valuation of assets and liabilities,
the determination of profit and the preparation of financial statements are similar, so that
the information included therein is comparable through subsequent years. The value of assets and
liabilities shown in the accounting books as at the end of the year is recognised in the same
amount in the accounting books as the opening balance for the subsequent financial year.
The accrual basis/An economic approach
All economic events in a given financial year are recognised in accounting books for that
year:
– foreign currencies and gold, purchased or sold in a spot or a forward transaction, as well
as debt securities purchased or sold in a forward transaction, are recognised in off-balance
sheet accounts from trade date to the settlement date;
– debt securities purchased or sold in a spot transaction and cash received or deposited by
the NBP subject to repayment are recognised in the balance sheet accounts on the
settlement date;
– interest, discount and premium on assets and liabilities and on off-balance sheet
instruments are taken to the profit and loss account at the end of each operating day.57
Events after the balance sheet date
The balance sheet and the profit and loss account recognise the events of which the
information was obtained after the balance sheet date and before the approval of the annual
financial statements, if these materially influence their contents.
Principles for the recognition of assets, liabilities, income and expense
Assets, liabilities, income and expense are recognised in accounting books if:
– it is probable that any future economic benefits will flow in or liabilities will be settled,
– the risks or benefit related to an asset or liability have been transferred to the NBP,
– the value of an asset or liability and income or expense may be estimated in a reliable
manner.
2009
148
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
57 Except for interest on balances maintained on nostro accounts, interest on the reserve requirement payment (interest
payment date) as well as interest on assets and liabilities related to Bank’s internal operations (as at the end of the
reporting period, not later than at the end of the month).
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
All income and expense regarding a given fiscal year are recognised in the financial result for
that fiscal year. The following principles are observed:
– unrealised gains are not recognised in the profit and loss account, with the exception of
income due to a decrease in the gold revaluation account,
– unrealised losses are recognised in the financial result as at the balance sheet date,58
– deferred income or expense is recognised in assets or liabilities.
Provisions for future liabilities are recognised in accounting books, where the NBP is liable
from past events or identified risk and, the performance of this liability or occurrence of identified
risk are likely to diminish economic benefits at the NBP, provided the amount of the liability and
the amount of identified risk to be covered may be assessed in a reliable manner.
Provisions for future liabilities not used due to the cessation, either in whole or in part – of
the liability or risk which explained the creation thereof are released and included into the profit
and loss account.
Provisions for future liabilities are created, revalued and released at the end of the reporting
period, not later than at the end of a month, except for provisions for future liabilities to the
employees, which are established, revalued and released on the balance sheet day.
The provision against the foreign exchange rate risk of the zloty is recognised in the
accounting books in the assessed amount, which would cover the identified risk of the foreign
exchange rate fluctuations of the zloty. The following are taken into account to assess the amount
of the provision: the amount of foreign exchange holdings bearing foreign exchange rate risk of
the zloty, the assessment of foreign exchange rate risk of the zloty based on generally accepted
and consistently applied methods of assessing financial risk, the existing and foreseen balance on
the revaluation account and unrealised gains and losses incurred as a consequence of foreign
exchange rate fluctuations of the zloty. The provision is created, revalued, released and recognised
in the profit and loss account on the balance sheet day. The creation of the provision must not
result in a loss in the current year.
Outstanding issues
Outstanding issues not laid down in the NBP accounting regulations are resolved as provided
for, as at the date of drawing up the financial statements, in:
– guidelines of the European Central Bank of 10 November 2006 on the legal framework for
accounting and financial reporting in the European System of Central Banks as amended,
– reports and decisions of the Accounting and Monetary Income Committee – AMICO of
the ECB,
– preparatory work regarding ECB guidelines,
– international accounting standards,
with a view to presenting the true and fair view of the financial statements.
149
58 Except for unrealised losses related to debt securities, not qualified as “held to maturity”, taken to the profit and loss
account on the day of reclassification of these items to “held to maturity” securities.
2009
150
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
15.4. Information about significant events after the balance
sheet date, not recognised in the NBP financial
statements
Amendments to accounting principles in the financial year 2010
Amendments to accounting principles introduced pursuant to Resolution No. 14/2009 of the
Monetary Policy Council of 15 December 2009 amending the resolution on the accounting
principles, the structure of assets and liabilities in the balance sheet and the profit and loss account
of the National Bank of Poland reflect the implementation by the NBP of a new version of IT system
for official foreign reserves management system from 1 January 2010. Accounting and technical
solutions used in the system have been contributed by several ESCB central banks (including the
NBP and ECB).
Accordingly, on 1 January 2010, the NBP introduced relevant amendments to the provisions
on accounting principles related to the quote currency and the internal rate of return:
• purchased/sold foreign currency for another foreign currency is converted into the
domestic currency according to the spot exchange rate (until 31 December 2009,
conversion was carried out according to the value of the foreign currency that was sold),
and the quote currency will be understood as the currency in which the price of a unit of
another currency is determined;
• the discount and premium on all debt securities purchased by the NBP will be settled
according to internal rate of return (IRR) (until 31 December 2009, the use of the IRR
method was required only for debt securities bearing no coupon with maturity over one
year, in other cases the straight-line method was used).
15.5. Certified auditor and its selection
The NBP annual financial statements drawn up as at 31 December 2009 are subject to
examination and assessment by a certified auditor, i.e. PricewaterhouseCoopers Sp. z o.o. with its
principal place of business in Warsaw. The certified auditor was selected in 2007 by the Monetary
Policy Council, pursuant to Article 69 section 1 of the Act on the National Bank of Poland.
The selection was made by unlimited tender pursuant to the Public Procurement Act of 29 January
2004 (Polish Journal of Laws No 223/2007, item 1655, as amended) for the period of three years
(auditing financial statements for the years 2007, 2008 and 2009).
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
15.6. Other issues influencing the correct understanding of
the NBP’s material and financial situation
15.6.1. New agreements between the Republic of Poland and
the International Monetary Fund
Flexible Credit Line
On 6 May 2009, the Executive Board of the IMF approved the request made by the Polish
authorities for a Flexible Credit Line (FCL) arrangement in the amount of SDR 13,690,000 thousand
(1000% of Poland’s quota in the IMF). Poland has received drawing rights under the FCL for the
period of one year. Poland did not draw on the FCL facility in 2009, but pursuant to art. 5 item 1a
of the Act on the NBP, the NBP bore the cost of a one-time commitment fee for making the FCL
facility available.
Special Drawing Rights allocation
On 7 August 2009, the IMF Board of Governors approved the decision adopted by the
Executive Board regarding a new allocation of Special Drawing Rights (SDR). The general allocation
of SDR was made on 28 August 2009 to IMF members in proportion to their existing IMF quotas.
Under the general allocation, the amount of 1,014,853.1 thousand SDR was allocated to Poland.
In addition, pursuant to the amendment to the IMF Articles of Agreement of 1997 approved
by the US Congress in June 2009, a special SDR allocation was implemented on 9 September 2009.
The beneficiaries of the allocation are countries that joined the IMF after 1981 and had not
participated in two earlier allocations. Under the special allocation Poland received 289,786.6
thousand SDR.
15.6.2. NBP share in the subscribed capital of the ECB
Pursuant to art. 28 of the Statute of the European System of Central Banks and the
European Central Bank, the national central banks shall be the sole subscribers to the capital of
the ECB. The subscription of capital shall be according to the key established in accordance with
Article 29, i.e. the shares of the NCBs in the ECB’s capital key are weighted according to the shares
of the respective Member States in the total population and the gross domestic product of the
European Union, in equal measure.
The key is updated every five years on the basis of data provided to the ECB by the European
Commission. The recent adjustment took place on 12 December 2008 and became effective on
1 January 2009. The adjustment is also made whenever a country joins the EU and its central bank
becomes ESCB member.
Following the recent adjustment of the subscription key, the share of the NBP in the ECB
subscribed capital rose from 4.8748% to 4.8954%, the NBP, as a non-euro area NCB is required
to pay the amount which is the equivalent of 7% of its subscribed capital as a contribution to
the operational costs of the ECB. On 2 January 2009, the NBP transferred the amount of
EUR 83,068.61 to the ECB and thus the NBP’s paid up share in the ECB capital increased from
EUR 19,657,419.83 to EUR 19,740,488.44. The NBP will pay the remaining share of 93%, i.e.
EUR 262,266,489.28 when Poland joins the euro area.
151
2009
152
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
15.6.3. The National Bank of Poland Foundation
On 10 August 2009, the National Bank of Poland Foundation was established and entered
into the National Court Register on 31 August 2009. The founding capital is PLN 1,500 thousand,
of which PLN 750 thousand is earmarked for economic activities.
15.7. Amendments to the accounting principles
in the financial year 2009
In the balance sheet prepared as at 31 December 2009, the presentation of items related to
claims on and liabilities to the IMF was modified. The quota of the Republic of Poland paid by the
NBP in the domestic currency to the IMF, recognised in the balance-sheet assets in item 10.2
“Other financial assets” until 2008, and liabilities in virtue of Account 1, recognised in the balance-
-sheet liabilities in item 8 “Liabilities to the IMF”, are currently recognised in the net value in the
balance-sheet assets in item 2.1 “Receivables from non-residents denominated in foreign
currencies” together with other claims on the IMF. Thus, item 2.1 presents the total amount of the
quota less liabilities in virtue of Account 1. The amendment has affected the balance-sheet total in
that it has diminished it by 5,447,269.3 thousand.
Moreover, liabilities in virtue of Account 2 related to IMF administrative expense previously
recognised in the balance-sheet liabilities in item 8 “Liabilities to the IMF”, are currently recognised
in item 5 “Liabilities to non-resident denominated in domestic currency”. This amendment has not
affected the balance sheet total.
The amendment pertained also to the structure of liabilities in virtue of the foreign bank
costs incurred by the NBP in the settlement with the initiators of international payment
instructions. Previously this category was presented in the balance-sheet assets in item 8
“Receivables from general government denominated in domestic currency” as “Other receivables
denominated in domestic currency”. As from 2009 it will be recognised in other balance-sheet
assets in item 10.5 “Sundry” as “Other receivables”. This amendment has not affected the
balance sheet total.
In connection with the transfer by KIR SA of the settlement of EuroELIXIR from SORBNET-
-EURO to TARGET2-NBP, the distinction between the domestic and cross-border settlement ceased
to exist. Hence, the balance of interbank settlements in euro, previously presented separately in the
balance-sheet liabilities in item 6 “Liabilities to residents denominated in foreign currencies”
(domestic settlements) and item 7 “Liabilities to non-residents denominated in foreign currencies”
(cross-border settlement), is currently presented jointly in item 10.3 “Sundry” as “Interbank
settlement accounts in the KIR system”. This amendment has not affected the balance sheet total.
Furthermore, the balance of accounts of Agencja Rynku Rolnego (Agricultural Market
Agency), previously presented in the balance-sheet liabilities in item 4.2 “Other liabilities” to other
residents denominated in domestic currency, is currently presented in item 4.1 “Liabilities to
general government”. This amendment has not affected the balance sheet total.
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
15.8. Data comparability
In order to ensure data comparability in the financial statements, the balance sheet as at
31 December 2008 was drawn up in accordance with the principles for format effective as at
31 December 2009.
The adjustments affected the following items of the balance sheet:
• assets – item 10.2 “Other financial assets” – decrease by PLN 5,447,269.3 thousand,
• liabilities – item 4.1 “Liabilities to general government” – increase by PLN 19,910.9
thousand,
• liabilities – item 4.2 “Other liabilities” – decrease by PLN 19,910.9 thousand,
• liabilities – item 5 “Liabilities to non-residents denominated in domestic currency” –
increase by PLN 128.3 thousand,
• liabilities – item 7 “Liabilities to non-residents denominated in foreign currency” –
decrease by PLN 455.9 thousand,
• liabilities – item 8 “Liabilities to the IMF” – decrease by PLN 5,447,397.6 thousand,
• liabilities – item 10.3 “Sundry” – increase by PLN 455.9 thousand.
Although the Bank reformatted the presentation of receivables stemming from the costs of
foreign bank paid by the NBP to be settled with the initiators of international payment orders, no
balance conversion was necessary as at 31 December 2008, as item 8 of the balance-sheet assets
amounted to zero in 2008. Also the item related to interbank domestic settlements in euro
amounted to zero as at 31 December 2008.
The following tables present the above changes.
Table 14
Changes in the presentation of the balance sheet – assets
153
Data from the
approved
financial
statements
Comparable
data
PLN thousand
1 2 3 4 = 3 – 2 5 = 4/2*100
in %
Balance as at
Change
31.12.2008 31.12.2008
Item
1. 8 476 939.7
175 772 863.9
8 476 939.7
175 772 863.9
0.0
0.0
0.0
0.0
2.1.
3.
Receivables from the IMF
Balances with foreign institutions,
debt securities, loans granted
and other foreign assets
Claims on residents
denominated in foreign currency
1 147 747.8
174 625 116.1
1 418.2
1 147 747.8
174 625 116,1
1 418.2
0.0
0.0
0.0
0.0
0.0
0.0
2.
Gold and gold receivables
Claims on non-residents
denominated in foreign currency
2.2.
2009
154
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
Table 15
Changes in the presentation of the balance sheet – liabilities
4.
5.
7.
9.
10.
10.2.
10.4.
10.5.
Claims on non-residents
denominated in domestic currency
Claims on other domestic monetary
financial institutions related
to monetary policy operations
denominated in domestic currency
Other claims on other domestic
monetary financial institutions
denominated in domestic currency
Debt securities of residents
denominated in domestic currency
Items under settlement
Other assets
Tangible and intangible
fixed assets
Other financial assets
Off-balance sheet instruments
revaluation differences
Accruals and prepaid expenses
Sundry
TOTAL ASSETS
0.0
17 675 387.8
1 481 856.0
0.0
0.0
0.0
7 222 512.4
927 125.4
5 629 023.3
333 658.0
18 526.7
314 179.0
210 630 978.0
0.0
17 675 387.8
1 481 856.0
0.0
0.0
0.0
1 775 243.1
927 125.4
181 754.0
333 658.0
18 526.7
314 179.0
205 183 708.7
0.0
0.0
0.0
0.0
0.0
0.0
-5 447 269.3
0.0
-5 447 269.3
0.0
0.0
0.0
-5 447 269.3
–
0.0
0.0
0.0
–
–
-75.4
0.0
-96.8
0.0
0.0
0.0
-2.6
10.1.
10.3.
6.
8. Claims on general government
denominated in domestic currency
31.12.2008
data from the
approved
financial
statements
PLN thousand
1 2 3 4 = 3 – 2 5 = 4/2*100
in %
Balance as at
Change
31.12.2008
comparable
data
Item
1.
2.
3.
4.
Banknotes and coins in circulation
Liabilities to other domestic monetary
financial institutions related
to monetary policy operations
denominated in domestic currency
Other liabilities to other domestic
monetary financial institutions
denominated in domestic currency
Liabilities to other residents
denominated in domestic currency
102 134 706.3
42 984 742.8
91 511.6
18 896 517.6
102 134 706.3
42 984 742.8
91 511.6
18 896 517.6
0.0 0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.1.
4.2.
5.
6.
7.
8.
Liabilities to general government
Other liabilities
Liabilities to non-residents
denominated in domestic currency
Liabilities to residents
in foreign currency
Liabilities to non-residents
denominated in foreign currency
Liabilities to the IMF
Account no 1
18 856 296.9
40 220.7
154 412.3
9 691 526.7
6 982 763.0
5 447 397.6
5 447 269.3
18 876 207.8
20 309.8
154 540.6
9 691 526.7
6 982 307.1
0.0
0.0
0.1
-49.5
0.1
0.0
0.0
-100.0
-100.0
19 910.9
-19 910.9
128.3
0.0
-455.9
-5 447 397.6
-5 447 269.3
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
Source: NBP data.
In the further part of this report prepared as at 31 December 2009 the analysis will be made
against the figures of 2008 adjusted to enable comparability.
15.9. Changes in balance-sheet items
The balance sheet total of the National Bank of Poland as at 31 December 2009 stood at
PLN 244,024,477.7 thousand. This represented an increase by PLN 38,840,769.0 thousand
(18.9%) as compared to the balance of PLN 205,183,708.7 thousand as at 31 December 2008.
Whereas the balance sheet increase on the asset-side was primarily stimulated by the expansion of
foreign exchange reserves, most of the growth on the liabilities’ side derived from growth in the
liabilities from monetary policy operations.
The volume of the balance sheet total was determined to a large extent by the quotations
of the Polish currency vis-a-vis the reserve currencies. Figure 20 shows the developments in the
average NBP exchange rate for five foreign currencies in 2009: USD, EUR, GBP, AUD and NOK.
Figure 20
Average NBP exchange rate for foreign currencies in 2009
155
9.
10.1.
Account no 2
Items under settlement
Other liabilities
Off-balance sheet instruments
revaluation differences
Accruals and deferred income
Sundry
Provisions for future liabilities
Revaluation accounts
128.3
0.0
883 769.6
144 017.9
228 272.6
511 479.1
118 025.8
31 063 882.3
0.0
0.0
884 225.5
144 017.9
228 272.6
511 935.0
118 025.8
31 063 882.3
-100.0
–
0.1
0.0
0.0
0.1
0.0
0.0
-128.3
0.0
455.9
0.0
0.0
455.9
0.0
0.0
10.2.
10.3.
11.
12.
10.
Capital and reserves
Financial result
TOTAL LIABILITIES
3 639 634.1
-11 457 911.7
210 630 978.0
3 639 634.1
-11 457 911.7
205 183 708.7
0.0
0.0
-2.6
0.0
0.0
-5 447 269.3
13.
14.
USD EUR GBP AUD NOK
2.9618
4.6546
0.4238 0.4997 0.5277 0.5273 0.5014 0.4993 0.4936 0.4748 0.4764 0.4968 0.5079 0.4874 0.4946
3.5416
2.9525
3.1733
2.8595 2.7538 2.8503
3.4561
3.6758
2.8675 2.8852
3.1812
3.2859
4.1605 4.2430
4.3838 4.4588 4.4696
4.7013
4.0998 4.1431 4.1082
4.4392
4.6578
4.1724 4.2226
4.7228
4.5544
4.8832
5.2745
5.1148
4.9311 4.8926
5.0546
4.5986
5.2182
4.2913
4.6443
2.0495
2.2187
2.3541 2.4422 2.4132 2.5252 2.5781
2.4405 2.4075
2.5444 2.6136 2.5162 2.5642
0
1
2
3
4
5
6
31 XII
2008 2009
I II III IV V VI VII VIII IX X XI XII
`
2009
156
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
Throughout 2009, the Australian dollar, Norwegian krone and Pound Sterling appreciated
vis-a-vis the Polish zloty by 25.1%, 16.7% and 7.2% respectively, whereas the US dollar and the
euro depreciated vis-a-vis the Polish zloty by 3.8% and 1.5% respectively.
15.9.1. Assets
Table 16
Assets
31.12.2008
comparable
data
PLN thousand
1 2 3 4 = 3 – 2 5 = 4/2*100
in %
Balance as at Change
Item 31.12.2009 31.12.2008–31.12.2009
1. 8 476 939.7
175 772 863.9
10 411 718.9
216 485 462.7
1 934 779.2
40 712 598.8
22.8
23.2
2.1.
3.
4.
5.
5.1.
5.2.
5.3.
5.4.
5.5.
6.
7.
8.
9.
10.
10.2.
10.4.
10.5.
Receivables from the IMF
Balances with foreign institutions, debt
securities. loans granted and other
foreign assets
Claims on residents denominated
in foreign currency
Claims on non-residents denominated
in domestic currency
Claims on other domestic monetary
financial institutions related
to monetary policy operations
denominated in domestic currency
Main refinancing operations
Long-term refinancing operations
Fine-tuning operations
Structural operations
Lombard loan
Other claims on other domestic
monetary financial institutions
denominated in domestic currency
Debt securities of residents
denominated in domestic currency
Claims on general government
denominated in domestic currency
Items under settlement
Other assets
Tangible and intangible
fixed assets
Other financial assets
Off-balance sheet instruments
revaluation differences
Accruals and prepaid expenses
Sundry
TOTAL ASSETS
1 147 747.8
174 625 116.1
1 418.2
0.0
17 675 387.8
0.0
0.0
15 357 645.4
0.0
2 317 742.4
1 481 856.0
0.0
0.0
0.0
1 775 243.1
927 125.4
181 754.0
333 658.0
18 526.7
314 179.0
205 183 708.7
7 256 617.6
209 228 845.1
930.9
0.0
14 627 195.7
0.0
0.0
14 627 195.7
0.0
0.0
1 101 497.8
0.0
0.0
0.0
1 397 671.7
884 085.7
180 032.4
485.6
44 075.3
288 992.7
244 024 477.7
6 108 869.8
34 603 729.0
-487.3
0.0
-3 048 192.1
0.0
0.0
-730 449.7
0.0
-2 317 742.4
-380 358.2
0.0
0.0
0.0
-377 571.4
-43 039.7
-1 721.6
-333 172.4
25 548.6
-25 186.3
38 840 769.0
532.2
19.8
-34.4
–
-17.2
–
–
-4.8
–
-100.0
-25.7
–
–
–
-21.3
-4.6
-0.9
-99.9
137.9
-8.0
18.9
2.
Gold and gold receivables
Claims on non-residents denominated
in foreign currency
2.2.
10.1.
10.3.
`
`
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
The share of main assets in the balance sheet total as at 31 December 2008 and 31
December 2009 is presented in Table 17.
Table 17
Structure of assets
Figure 21 compares the share of assets in the NBP balance sheet total between 2008
and 2009.
157
2.2.
3.
4.
5.
5.1.
5.2.
5.3.
5.4.
5.5.
6.
7.
8.
9.
10.
10.1.
10.2.
10.3.
10.4.
10.5.
Balances with foreign institutions, debt
securities, loans granted and other
foreign assets
Claims on residents denominated
in foreign currency
Claims on non-residents denominated
in domestic currency
Claims on other domestic monetary
financial institutions related to
monetary policy operations
denominated in domestic currency
Main refinancing operations
Long-term refinancing operations
Fine-tuning operations
Structural operations
Lombard loan
Other claims on other domestic
monetary financial institutions
denominated in domestic currency
Debt securities of residents
denominated in domestic currency
Claims on general government
denominated in domestic currency
Items under settlement
Other assets
Tangible and intangible
fixed assets
Other financial assets
Off-balance sheet instruments
revaluation differences
Accruals and prepaid expenses
Sundry
TOTAL ASSETS
85.1
0.0
0.0
8.6
0.0
0.0
7.5
0.0
1.1
0.7
0.0
0.0
0.0
0.9
0.4
0.1
0.2
0.0
0.2
100.0
85.7
0.0
0.0
6.0
0.0
0.0
6.0
0.0
0.0
0.4
0.0
0.0
0.0
0.6
0.4
0.1
0.0
0.0
0.1
100.0
0.6
0.0
0.0
-2.6
0.0
0.0
-1.5
0.0
-1.1
-0.3
0.0
0.0
0.0
-0.3
0.0
0.0
-0.2
0.0
-0.1
–
31.12.2008
comparable
data
in %
1 2 3 4 = 3 – 2
pps
Balance as at
31.12.2009
Change
31.12.2008
–
31.12.2009
Item
1.
2.
2.1.
Gold and gold receivables
Claims on non-residents denominated
in foreign currency
Receivables from the IMF
4.1
85.7
0.6
4.3
88.7
3.0
0.2
3.0
2.4
2009
158
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
Figure 21
Share of assets in NBP balance sheet in 2008 and 2009
Claims on non-residents denominated in foreign currency were the main asset item both as
at 31 December 2008 and as at 31 December 2009 (item 2). This category increased its share in
the balance sheet total by 3.0 percentage points, from 85.7% to 88.7%.
Gold and gold receivables (item 1) also increased their share in the structure of assets: by 0.2
percentage point, from 4.1% to 4.3%.
The shares of other items in the balance sheet total reported a decline between 2008 and
2009:
– claims on other domestic monetary financial institutions related to monetary policy
operations denominated in domestic currency (item 5) – by 2.6 percentage points, from
0.9% to 8.4%;
– other claims on other domestic monetary financial institutions denominated in domestic
currency (item 6) – by 0.3 percentage point, from 0.7% to 0.4%;
– other assets (item 10) – by 0.3 percentage point, from 0.9% to 0.6%.
4.1 4.3
85.7
88.7
8.6 6.0
0.7 0.9 0.4 0.6
0
20
40
60
80
100
per cent
31.12.2008 31.12.2009
Gold and gold receivables
Claims on non-residents denominated in foreign currency
Claims on other domestic monetary financial institutions related to monetary policy
operations denominated in domestic currency
Other claims on other domestic monetary financial institutions denominated
in domestic currency
Other items
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
15.9.1.1. Gold and gold receivables
Table 18
Gold and gold receivables
* Comparable data, compliant with data in the approved financial statements.
As at 31 December 2009 the NBP held 3,308,741.109 ounces of gold, either kept in vaults
or placed in deposits with foreign banks. The change in the zloty equivalent value resulted from
the rise in the market price of gold.
15.9.1.2. Claims on non-residents denominated in foreign currency
Table 19
Claims on non-residents denominated in foreign currency
* Comparable data, compliant with data in the approved financial statements.
The item “Claims on non-residents denominated in foreign currency” comprises assets
denominated in foreign currency, which is the main item of the official reserve assets of the NBP.59
As at the end of 2009, the balance of the NBP official reserve assets rose by the equivalent of EUR
11,082.2 million (including the equivalent of EUR 1,419.1 million of SDR allocation, see Chapter
“New agreements between the Republic of Poland and the International Monetary Fund”). This
growth was primarily a result of the positive balance of transactions settled via TARGET2-NBP,
159
59 Official reserve assets of the NBP denominated in foreign currency include: share in IMF holdings of currency, current
accounts and deposits denominated in foreign currency in foreign banks, foreign securities, deposits (loans granted)
in foreign currency under in debt securities reverse repo transactions, foreign currency stock and monetary gold.
31.12.2008*
PLN thousand in %
Balance as at Change
31.12.2009
31.12.2008 –
31.12.2009
Item
1. Gold and gold receivables 8 476 939.7 10 411 718.9 1 934 779.2 22.8
1 2 3 4 = 3 – 2 5 = 4/2*100
31.12.2008*
PLN thousand
4 = 3 – 2
5 = 4
/2*100
1 2 3 6 7
in %
Balance as at Change Structure
31.12.2009 31.12.2008–31.12.2009
31.12.
2008
31.12.
2009
Item
2.
2.1.
2.2.
Claims on non-residents
denominated in foreign
currency
Receivables from the IMF
Balances with foreign
institutions, debt securities,
loans granted and other
foreign assets
175 772 863.9
1 147 747.8
174 625 116.1
216 485 462.7
7 256 617.6
209 228 845.1
40 712 598.8
6 108 869.8
34 603 729.0
23.2
532.2
19.8
100.0
0.7
99.3
100.0
3.4
96.6
2009
160
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
positive balance of flows related to the servicing of State Treasury debt and investment activity of
the NBP.
The item comprises primarily debt securities in foreign currencies, NBP accounts with
international institutions (current and term) and receivables from the International Monetary Fund.
15.9.1.3. Claims on residents denominated in foreign currency
Table 20
Claims on residents denominated in foreign currency
The item includes claims on KIR SA arising from coverage of a portion of the fee paid by the
NBP for the participation in TARGET2 system.
15.9.1.4. Claims on other domestic monetary financial institutions related to monetary
policy operations denominated in domestic currency
Table 21
Claims on other domestic monetary financial institutions related to monetary policy operations
denominated in domestic currency
* Comparable data, compliant with data in the approved financial statements.
31.12.2008*
PLN thousand
1 2 3 4 = 3 – 2 5 = 4/2*100
in %
Balance as at Change
31.12.2009
31.12.2008 –
31.12.2009
Item
3. Claims on residents denominated
in foreign currency
1 418.2 930.9 -487.3 -34.4
31.12.2008*
PLN thousand
3 4 = 3 – 2
5 = 4/2
*100
1 2 6 7
in %
Balance as at Change Structure
31.12.2009
31.12.2008 –
31.12.2009
31.12.
2008
31.12.
2009
Item
5.
5.2.
5.3.
Claims on other domestic
monetary financial
institutions related
to monetary policy
operations denominated
in domestic currency
Main refinancing operations
Long-term refinancing
operations
Fine-tuning operations
17 675 387.8
0.0
0.0
15 357 645.4
14 627 195.7
0.0
0.0
14 627 195.7
-3 048 192.1
0.0
0.0
-730 449.7
-17.2
–
–
-4.8
100.0
0.0
0.0
86.9
100.0
0.0
0.0
100.0
5.1.
5.4.
5.5.
Structural operations
Lombard loan
0.0
2 317 742.4
0.0
0.0
0.0
-2 317 742.4
–
-100.0
0.0
13.1
0.0
0.0
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
The item includes NBP’s claims related to monetary policy operations conducted with
domestic banks. In 2009, they included mainly repo fine-tuning operations which temporarily
provide the banking sector with liquidity and are conducted under the Confidence Package.
In repo operations, securities are purchased from banks for different periods (in 2009, for 3 and
6 months) in a tender procedure. They are recorded as deposits (loans granted) in domestic
currency under securities reverse repo transactions.
15.9.1.5. Other claims on other domestic monetary financial institutions denominated
in domestic currency
Table 22
Other claims on other domestic monetary financial institutions denominated in domestic
currency
* Comparable data, compliant with data in the approved financial statements.
The item includes NBP’s claims arising from operations with domestic banks which are not
related to monetary policy. Its main component is refinancing credit granted for central
investments. The decrease in the balance results from quarterly repayments of the credit together
with interest.
15.9.1.6. Other assets
Table 23
Other assets
161
31.12.2008*
1 2 3 4 = 3 – 2 5 = 4/2*100
PLN thousand in %
Balance as at Change
31.12.2009
31.12.2008 –
31.12.2009
Item
6. Other claims on other domestic
monetary financial institutions
denominated in domestic currency
1 481 856.0 1 101 497.8 -380 358.2 -25.7
Balance as at
Change
31.12.2008–31.12.2009
31.12.2008 Structure
data from
the
approved
financial
statements
comparable
data
31.12.2009
PLN thousand in %
1 2 3 4 5 = 4 – 3 6 = 5/3*100 7 8
Item
10.
10.1.
10.2.
10.3.
Other assets
Tangible and
intangible
fixed assets
Other financial
assets
Off-balance sheet
instruments
revaluation
differences
7 222 512.4
927 125.4
5 629 023.3
333 658.0
1 775 243.1
927 125.4
181 754.0
333 658.0
1 397 671.7
884 085.7
180 032.4
485.6
-377 571.4
-43 039.7
-1 721.6
-333 172.4
-21.3
-4.6
-0.9
-99.9
100.0
52.2
10.2
18.8
100.0
63.3
12.9
0.0
31.12.
2008
31.12.
2009
2009
162
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
Tangible and intangible fixed assets held by the NBP are the prime component of this item.
Shares and equities in domestic and foreign entities held by the NBP were the second most
important element of other assets, which also comprised the Republic of Poland’s quota paid to
the International Monetary Fund in zloty (see Chapter “Amendments to the accounting principles
in the financial year 2009”), accruals and prepaid expenses, off-balance sheet instruments
revaluation differences, and receivables from banking transactions and precious metals.
15.9.2. Liabilities
Table 24
Liabilities
10.4.
10.5.
Accruals and
prepaid expenses
Sundry
18 526.7
314 179.0
18 526.7
314 179.0
44 075.3
288 992.7
25 548.6
-25 186.3
137.9
-8.0
1.1
17.7
3.1
20.7
31.12.2008
comparable
data
PLN thousand
1 2 3 4 = 3 – 2 5 = 4/2*100
in %
Balance as at Change
Item 31.12.2009 31.12.2008–31.12.2009
1.
2.
2.1.
2.2.
2.3.
2.4.
3.
4.
Banknotes and coins in circulation
Liabilities to other domestic monetary
financial institutions related to monetary
policy operations denominated in
domestic currency
Current accounts (including minimum
reserve requirement accounts)
Overnight deposits
Fixed-interest deposits
Other monetary policy operations
Other liabilities
to other domestic monetary
financial institutions denominated
in domestic currency
Liabilities to other residents
denominated in domestic currency
102 134 706.3
42 984 742.8
24 075 231.9
501 048.0
0.0
18 408 462.9
91 511.6
18 896 517.6
100 344 808.8
78 536 967.1
36 223 474.3
1 329 072.8
0.0
40 984 420.0
57 511.2
11 131 978.4
-1 789 897.5 -1.8
82.7
50.5
165.3
–
122.6
-37.2
-41.1
35 552 224.3
12 148 242.4
828 024.8
0.0
22 575 957.1
-34 000.4
-7 764 539.2
4.1.
4.2.
5.
6.
7.
8.
9.
10.1.
Liabilities to general government
Other liabilities
Liabilities to non-residents denominated
in domestic currency
Liabilities to residents denominated
in foreign currency
Liabilities to non-residents denominated
in foreign currency
Liabilities to the IMF
Items under settlement
Other liabilities
Off-balance sheet instruments
revaluation differences
Accruals and deferred income
Sundry
18 876 207.8
20 309.8
154 540.6
9 691 526.7
6 982 307.1
0.0
0.0
884 225.5
144 017.9
228 272.6
511 935.0
11 114 582.7
17 395.7
1 335 084.6
13 400 160.5
8 145 431.9
5 841 288.9
0.0
303 421.9
518.2
218 237.9
84 665.8
-41.1
-14.3
763.9
38.3
16.7
–
–
-65.7
-99.6
-4.4
-83.5
-7 761 625.1
-2 914.1
1 180 544.0
3 708 633.8
-1 163 124.8
5 841 288.9
0.0
-580 803.6
-143 499.7
-10 034.7
-427 269.2
10.2.
10.3.
10.
The share of main assets in the balance sheet total as at 31 December 2008 and
31 December 2009 is presented in Table 25.
Table 25
Structure of liabilities
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
163
Differences on exchange rate valuation
of assets, liabilities and off-balance
sheet instruments in foreign currency
Assets and liabilities price revaluation
differences
Capital and reserves
Statutory fund
Reserve fund
Reserves
Financial result
Financial result for the current year
Loss of previous years
TOTAL LIABILITIES
22 980 583.5
6 465 259.0
3 639 634.1
1 500 000.0
0.0
2 139 634.1
-11 457 911.7
0.0
-11 457 911.7
205 183 708.7
10 840 211.6
1 757 437.4
17 891 964.4
1 500 000.0
0.0
16 391 964.4
-7 292 357.3
4 165 554.4
-11 457 911.7
244 024 477.4
-52.8
-72.8
391.6
0.0
–
666.1
-36.4
–
0.0
18.9
-12 140 371.9
-4 707 821.6
14 252 330.3
0.0
0.0
14 252 330.3
4 165 554.4
4 165 554.4
0.0
38 840 760.0
12.2.
12.3.
13.
13.1.
13.2.
13.3.
14.
14.1.
14.2.
Provisions for future liabilities
Revaluation accounts
Revaluation account
118 025.8
31 063 882.3
1 618 039.8
112 545.1
14 215 672.2
1 618 023.2
-4.6
-54.2
0.0
-5 480.7
-16 848 210.1
-16.6
11.
12.
12.1.
31.12.2008
comparable
data
in %
1 2 3 4 = 3 – 2
pps
Balance as at Change
31.12.2009
31.12.2008
–
31.12.2009
Item
1.
2.
2.1.
2.2.
Banknotes and coins in circulation
Liabilities to other domestic monetary
financial institutions related to
monetary policy operations
denominated in domestic currency
Current accounts (including minimum
reserve requirement accounts)
Overnight deposit
49.8
20.9
11.7
0.2
41.1
32.2
14.8
0.6
-8.7
11.3
3.1
0.4
2.3.
2.4.
3.
4.
4.1.
4.2.
5.
6.
7.
8.
Fixed-interest deposits
Other monetary policy operations
Other liabilities to other
domestic monetary financial
institutions denominated
in domestic currency
Liabilities to other residents
denominated in domestic currency
Liabilities to general
government
Other liabilities
Liabilities to non-residents
denominated in domestic currency
Liabilities to residents denominated
in foreign currency
Liabilities to non-residents
denominated in foreign currency
Liabilities to the IMF
0.0
9.0
0.1
9.2
9.2
0.0
0.1
4.7
3.4
0.0
0.0
16.8
0.0
4.6
4.6
0.0
0.6
5.5
3.3
2.4
0.0
7.8
-0.1
-4.6
-4.6
0.0
0.5
0.8
-0.1
2.4
2009
164
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
Figure 22 compares the structure of liabilities in the NBP balance sheet total between 2008
and 2009.
Figure 22
Share of liabilities in NBP balance sheet total in 2008 and 2009
Both at year-end 2008 and 2009 “Banknotes and coins in circulation” was the main liability
item.
49.8
41.1
8.1 8.8
30.3
37.4
0.0
2.4
15.1
5.8
1.8
7.3
0.5 1.7 0.2
0.0 -5.6 -4.7
-10
0
10
20
30
40
50
60
per cent
31.12.2008 31.12.2009
Banknotes and coins in circulation Liabilities denominated
Liabilities denominated in domestic currency in foreign currency
Revaluation accounts Liabilities to the IMF
Capital and reserves
Other liabilities and provisions
for future liabilities
Financial results for the current year
Loss of previous year
10.1.
10.2.
10.3.
11.
12.
12.1.
12.2.
12.3.
13.
13.1.
13.2.
13.3.
14.
14.1.
14.2.
Off-balance sheet instruments
revaluation differences
Accruals and deferred income
Sundry
Provisions for future liabilities
Revaluation accounts
Revaluation account
Differences on exchange rate valuation
of assets, liabilities and off-balance
sheet instruments in foreign currency
Assets and liabilities price revaluation
differences
Capital and reserves
Statutory fund
Reserve fund
Reserves
Financial result
Financial result for the current year
Loss of previous years
TOTAL LIABILITIES
0.1
0.1
0.2
0.1
15.1
0.8
11.2
3.1
1.8
0.7
0.0
1.1
-5.6
0.0
-5.6
100.0
0.0
0.1
0.0
0.1
5.8
0.7
4.4
0.7
7.3
0.6
0.0
6.7
-3.0
1.7
-4.7
100.0
-0.1
0.0
-0.2
0.0
-9.3
-0.1
-6.8
-2.4
5.5
-0.1
0.0
5.6
2.6
1.7
0.9
–
9.
10.
Items under settlement
Other liabilities
0.0
0.4
0.0
0.1
0.0
-0.3
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
Increase in share in the structure of liabilities involved the following positions:
• liabilities to other domestic monetary financial institutions related to monetary policy
operations denominated in domestic currency (item 2) – by 11.3 percentage points, from
20.9% to 32.2%,
• capital and reserves (item 13) – by 5.5 percentage points, from 1.8% to 7.3%,
• financial result (item 14) – by 2.6 percentage points, from -5.6% to -3.0% (the NBP posted
a profit in 2009),
• liabilities to the IMF (item 8) – by 2.4 percentage points, from 0.0% to 2.4%,
• liabilities to residents denominated in foreign currency (item 6) – by 0.8 percentage point,
from 4.7% to 5.5%,
• liabilities to non-residents denominated in domestic currency (item 5) – by 0.5 percentage
point, from 0.6% to 0.1%.
The shares of other items in the balance sheet total decreased in 2009 compared to 2008:
• revaluation accounts (item 12) – by 11.8 percentage points, from 15.1% to 5.8%,
• banknotes and coins in circulation (item 1) – by 8.7 percentage points, from 49.8% to
41.1%,
• liabilities to other residents denominated in domestic currency (item 4) – by 4.6 percentage
points, from 9.2% to 4.6%,
• other liabilities (item 10) – by 0.3 percentage point, from 0.4% to 0.1%,
• liabilities to residents denominated in foreign currency (item 7) – by 0.1 percentage point,
from 3.4% to 3.3%,
• other liabilities to other domestic monetary financial institutions denominated in domestic
currency – by 0.1 percentage point, from 0.1% to 0.0%.
15.9.2.1. Banknotes and coins in circulation
Table 26
Banknotes and coins in circulation
* Comparable data, compliant with data in the approved financial statements.
** Pursuant to § 10 section 1 item 1 of resolution No 16/2003, the value of banknotes and coins in circulation is the nominal value of
banknotes and coins issued, net of the nominal value of banknotes and coins held in NBP cashier’s offices and vaults, deposited in other
banks’ vaults and the nominal value of banknotes and coins withdrawn from circulation due to wear.
165
31.12.2008*
PLN thousand
1 2 3 4 = 3 – 2 5 = 4/2*100
in %
Balances as at Change
31.12.2009
31.12.2008–
31.12.2009
Item
1. Banknotes and coins in circulation** 102 134 706.3 100 344 808.8 -1 789 897.5 -1.8
2009
166
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
The balance of banknotes and coins in circulation amounted to PLN 100,344,808.8
thousand as at 31 December 2009. This represents a decline by PLN 1,789,897.5 thousand (1.8%)
compared to the end of 2008. The balance of banknotes and coins in circulation averaged
PLN 100,672,978.5 thousand in 2009.
15.9.2.2. Liabilities to other domestic monetary financial institutions related to monetary
policy operations denominated in domestic currency
Table 27
Liabilities to other domestic monetary financial institutions related to monetary policy
operations denominated in domestic currency
* Comparable data, compliant with data in the approved financial statements.
This item most specifically comprises liabilities from other operations of monetary policy and
current account balances of domestic banks (including the minimum reserve requirement
accounts). In 2009, the development of market interest rates primarily stemmed from open market
operations conducted via the issue of NBP money bills. A structural operation was also conducted
of early redemption of NBP bonds.
31.12.2008*
PLN thousand in %
Balance as at Change Structure
31.12.2009
31.12.2008 –
31.12.2009
31.12.
2008
31.12.
2009
Item
2.
2.1.
2.2.
2.3.
2.4.
Liabilities to other domestic
monetary financial
institutions related to
monetary policy operations
denominated in domestic
currency
Current accounts (including
minimum reserve
requirement accounts)
Overnight deposit
Fixed-interest
deposits
Other monetary policy
operations
42 984 742.8
24 075 231.9
501 048.0
0.0
18 408 462.9
78 536 967.1
36 223 474.3
1 329 072.8
0.0
40 984 420.0
35 552 224.3
12 148 242.4
828 024.8
0.0
22 575 957.1
82.7
50.5
165.3
–
122.6
100.0
56.0
1.2
0.0
42.8
100.0
46.1
1.7
0.0
52.2
3 4 = 3 – 2
5 =
4/2*100
1 2 6 7
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
15.9.2.3. Other liabilities to other domestic monetary financial institutions denominated
in domestic currency
Table 28
Other liabilities to other domestic monetary financial institutions denominated in domestic
currency
* Comparable data, compliant with data in the approved financial statements.
This item principally reflects the balance of settlements under KIR – domestic payment
system. They arose through the NBP customers’ payment orders unsettled by KIR and outstanding
as at 31 December 2009.
15.9.2.4. Liabilities to other residents denominated in domestic currency
Table 29
Liabilities to other residents denominated in domestic currency
The key element of this item are liabilities to the public sector (99.7%), i.e. general
government (including state-run targeted funds and social security funds). These include primarily
current accounts, auxiliary accounts and term deposit accounts denominated in domestic currency
operated by the NBP. The period under analysis saw the decline in this item, as funds decreased in
the current accounts of the state budget and Labour Fund.
In 2009, there was a change in the structure of the balance in the accounts of the
Agricultural Market Agency, previously presented in item 4.2 “Other liabilities”. Currently, both
balances are presented in item 4.1 “Liabilities to general government” (see Chapter “Amendments
to the accounting principles in the financial year 2009”).
167
31.12.2008*
PLN thousand
1 2 3 4 = 3 – 2
in %
5 = 4/2*100
Balance as at Change
Item 31.12.2009 31.12.2008–31.12.2009
3.
91 511.6 57 511.2 -34 000.4 -37.2
Other liabilities to other domestic
monetary financial institutions
denominated in domestic currency
31.12.2008
data from the
approved
financial
statements
comparable
data
31.12.2009
PLN thousand in %
Balance as at
Structure
Change
31.12.2008–
31.12.2009 31.12.
2008
31.12.
2009
Item
4.
4.1.
4.2.
Liabilities to other
residents denominated
in domestic currency
Liabilities to general
government
Other liabilities
18 896 517.6
18 856 296.9
40 220.7
18 896 517.6
18 876 207.8
20 309.8
11 131 978.4 -7 764 539.2
11 114 582.7 -7 761 625.1
17 395.7 -2 914.1
-41.1
-41.1
-14.3
100.0
99.9
0.1
100.0
99.8
0.2
1 2 3 4 5 = 4 – 3
6 = 5
/3*100
7 8
2009
168
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
15.9.2.5. Liabilities to non-residents denominated in domestic currency
Table 30
Liabilities to non-residents denominated in domestic currency
This item consists primarily of funds held in the current accounts of the European
Commission and the World Bank Group. Liabilities to non-residents denominated in domestic
currency rose over the discussed period, as balances grew in the current account of the European
Commission.
15.9.2.6. Liabilities to residents denominated in foreign currency
Table 31
Liabilities to residents denominated in foreign currency
* Comparable data, compliant with data in the approved financial statements.
This item mainly covered monetary assets accumulated in the current accounts held by
general government entities in foreign currency. The reason for an increase in this category over
that period can be sought in the accretion of funds in the current account of the Ministry of
Finance.
31.12.2008
data from the
approved
financial
statements
comparable
data
31.12.2009
PLN thousand in %
Balance as at
Change
Item 31.12.2008–31.12.2009
5. Liabilities to non-
-residents denominated
in domestic currency
154 412.3 154 540.6 1 335 084.6 1 180 544.0 763.9
1 2 3 4 5 = 4 – 3 6 = 5/3*100
31.12.2008*
PLN thousand
1 2 3 4 = 3 – 2
in %
5 = 4/2*100
Balance as at Change
Item 31.12.2009 31.12.2008–31.12.2009
6.
9 691 526.7 13 400 160.5 3 708 633.8 38.3
Liabilities to residents
denominated in foreign currency
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
15.9.2.7. Liabilities to non-residents denominated in foreign currency
Table 32
Liabilities to non-residents denominated in foreign currency
Liabilities to non-residents denominated in foreign currency are mainly composed of term
deposits received in foreign currency under securities repo transactions concluded with foreign
credit institutions.
In 2009, there was a change in the structure of the balance of cross-border interbank
settlements denominated in euro, previously presented in item 7 (see Chapter “Amendments to
the accounting principles in the financial year 2009”). Currently, this balance has been included in
item 10.3 “Sundry” on the liabilities side of the balance sheet, along with domestic interbank
settlements.
15.9.2.8. Liabilities to the IMF
Table 33
Liabilities to the IMF
The year 2009 brought about a new manner of presenting liabilities to the IMF (see Chapter
“Amendments to the accounting principles in the financial year 2009”). Presently, this item
comprises only the liabilities from SDR allocation (see Chapter “New agreements between the
Republic of Poland and the International Monetary Fund”).
169
31.12.2008
data from the
approved
financial
statements
comparable
data
31.12.2009
PLN thousand in %
Balance as at
Change
Item 31.12.2008–31.12.2009
7. Liabilities to non-
-residents denominated
in foreign currency
6 982 763.0 6 982 307.1 8 145 431.9 1 163 124.8 16.7
1 2 3 4 5 = 4 – 3 6 = 5/3*100
31.12.2008
data from the
approved
financial
statements
comparable
data
31.12.2009
PLN thousand in %
Balance as at
Change
Item 31.12.2008–31.12.2009
8. Liabilities to the IMF 5 447 397.6 0.0 5 841 288.9 5 841 288.9 –
1 2 3 4 5 = 4 – 3 6 = 5/3*100
2009
170
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
15.9.2.9. Other liabilities
Table 34
Other liabilities
This item mainly comprises accruals and prepaid expenses presented in item 10.2 as well as
liabilities from banking transactions and special funds, presented in item 10.3.
The decrease in other liabilities mainly results from the decline in the balance of adjustment
to the average expense of the off-balance sheet instruments holdings – the core component of the
item “Sundry”.
The year 2009 brought about a new manner of presenting the balances of interbank
settlements in euro. Whereas this category is currently presented in item 10.3 “Sundry”, it used to
be presented under other items of liabilities (see Chapter “Amendments to the accounting
principles in the financial year 2009”).
15.9.2.10. Provisions for future liabilities
Table 35
Provisions for future liabilities
* Comparable data, compliant with data in the approved financial statements.
Provisions for future liabilities to the employees is the main element of this item and include
statutory and optional severance packages and compensation disbursed on the termination of
work contracts for reasons not attributable to employees, retirement and disability packages,
jubilee bonuses and provisions from unused holiday leaves. This item decreased in 2009 most
Balance as at
Structure
Change
31.12.2008–31.12.2009
31.12.2008
data from the
approved
financial
statements
comparable
data
31.12.2009
PLN thousand in %
1 2 3 4 5 = 4 – 3 6 = 5/3*100 7 8
Item
10.
10.1.
10.2.
10.3.
Other liabilities
Off-balance sheet
instruments revaluation
differences
Accruals and
prepaid expense
Sundry
883 769.6
144 017.9
228 272.6
511 479.1
884 225.5
144 017.9
228 272.6
511 935.0
303 421.9
518.2
218 237.9
84 665.8
-580 803.6
-143 499.7
-10 034.7
-427 269.2
-65.7
-99.6
-4.4
-83.5
100.0
16.3
25.8
57.9
100.0
0.2
72.2
27.6
31.12.
2008
31.12.
2009
31.12.2008*
PLN thousand
1 2 3 4 = 3 – 2
in %
5 = 4/2*100
Balance as at Change
Item 31.12.2009 31.12.2008–31.12.2009
11. Provisions for future liabilities 118 025.8 112 545.1 -5 480.7 -4.6
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
specifically because provisions were established under the Employees Assistance Scheme with
reference to the reorganisation of regional branches of the NBP.
15.9.2.11. Revaluation accounts
Table 36
Revaluation accounts
* Comparable data, compliant with data in the approved financial statements.
The main components of this item are gains on exchange rate valuation of assets, liabilities
and off-balance sheet instruments denominated in foreign currency, gains on debt securities price
valuation, as well as gold revaluation account. Most of the decline in this item can be traceable to
zloty appreciation vis-a-vis the US dollar and the euro (year-on-year).
15.9.2.12. Capital and reserves
Table 37
Capital and reserves
* Comparable data, compliant with data in the approved financial statements.
The item comprises statutory fund and provisions against the foreign exchange rate risk of
the zloty. The latter is established in pursuance of the Monetary Policy Council Resolution
No 9/2006 of 19 December 2006 on the principles for creating and releasing a provision against
the foreign exchange rate risk of the zloty at the National Bank of Poland. The increase in the item
in the analysed period resulted from the adjustment of the provision in the amount of PLN
14,252,330.3 thousand.
171
31.12.2008*
PLN thousand
1 2 3 4 = 3 – 2
in %
5 = 4/2*100
Balance as at Change
Item 31.12.2009 31.12.2008–31.12.2009
12. Revaluation accounts 31 063 882.3 14 215 672.2 -16 848 210.1 -54.2
31.12.2008*
PLN thousand
1 2 3 4 = 3 – 2
in %
5 = 4/2*100
Balance as at Change
Item 31.12.2009 31.12.2008–31.12.2009
13. Capital and reserves 3 639 634.1 17 891 964.4 14 252 330.3 391.6
`
2009
172
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
15.9.2.13. Financial result
Table 38
Financial result
* Comparable data, compliant with data in the approved financial statements.
This item comprised net loss of PLN 11,457,911.7 thousand carried forward from previous
years and the financial result for the current year of PLN 4,165,554.4 thousand.
15.9.3. Off-balance sheet items
The main component of off-balance sheet items are receivables and liabilities denominated
in foreign currency and domestic currency from spot and forward transactions.
Table 39
Off-balance sheet item – claims and liabilities due from spot transactions and forward
transactions
The value of individual positions decreased due to the reduction in the volume of FX swap
transactions concluded with banks. The balances as of 2009-end refer to spot transactions only.
14.
14.1.
14.2.
Financial result
Financial result
for the current year
-11 457 911.7
0.0
-11 457 911.7
-7 292 357.3
4 165 554.4
-11 457 911.7
4 165 554.4
4 165 554.4
0.0
-36.4
–
0.0
100.0
0.0
100.0
100.0
-57.1
157.1
31.12.2008*
PLN thousand in %
Balance as at Change Structure
31.12.2009
31.12.2008–
31.12.2009
31.12.
2008
31.12.
2009
Item
3 4 = 3 – 2
5 =
4/2*100
1 2 6 7
Loss of
previous years
31.12.2008
PLN thousand in %
Balance as at Change
Item 31.12.2009 31.12.2008–31.12.2009
1.
2.
3.
4.
Off-balance sheet items
Receivables and liabilities from spot
transactions and forward transactions
Receivables denominated in foreign
currency from spot transactions and
forward transactions
Liabilities denominated in foreign
currency from spot transactions
and forward transactions
Receivables denominated in domestic
currency from spot transactions and
forward transactions
Liabilities denominated in domestic
currency from spot transactions and
forward transactions
4 501 023.6
2 363 577.2
351 642.5
2 489 088.9
45 268.0
44 122.9
0.0
1 145.1
-4 455 755.6
-2 319 454.3
-351 642.5
-2 487 943.8
-99.0
-98.1
-100.0
-99.9
1 2 3 4 = 3 – 2 5 = 4/2*100
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
Furthermore, the off-balance sheet items include the value of financial and guarantee
collaterals received by the NBP (no off-balance sheet relating to collateral granted occurred as of
31 December 2009), the amount of collateral claimed by the NBP and foreign exchange values
accepted for collection.
Table 40
Other off-balance sheet items
Interest from Bank Handlowo-Kredytowy SA in liquidation accrued after the bank’s
insolvency had been declared (i.e. as from 1 April 1992) amounted to PLN 1,183,103.7 thousand.
Its balance remained unchanged in comparison with the preceding reporting period.
15.10. Changes in the NBP profit and loss account
Table 41
Profit and loss account in 2008 and 2009
173
31.12.2008
PLN thousand
1 2 3
in %
4 = 3 – 2 5 = 4/2*100
Balance as at Change
Item 31.12.2009 31.12.2008–31.12.2009
1.
2.
3.
4.
Other off-balance sheet items
Financial collaterals
Guarantee collaterals
Conditional receivables
Foreign currency accepted for collection
7 058.0
16 271.5
269.0
6.5
0.0
15 785.6
269.0
0.3
-7 058.0
-485.9
0.0
-6.2
-100.0
-3.0
0.0
-95.4
Change
PLN thousand
2008
Data for
2009
in %
1 2 3 4 = 3 – 2 5 = 4/2*100
Item
1.
1.1.
2.
2.2.
2.3.
Total profit/loss
Net interest, discount and
premium income/expense
Interest, discount and
premium income
Interest, discount and
premium expense
Net income/expense on
financial operations
Income on
financial operations
Expense on financial
operations
Unrealised losses
0.0 4 165 554.4 4 165 554.4
3 136 277.6 2 989 740.8 -146 536.8
7 019 326.4 6 675 900.8 -343 425.6
3 883 048.8 3 686 160.0 -196 888.8
-2 132 886.9 2 321 140.5 4 454 027.4
4 175 699.2 18 117 051.9 13 941 352.7
1 522 010.5 980 316.8 -541 693.7
2 646 941.5 563 281.0 -2 083 660.5
–
-4.7
-4.9
-5.1
-208.8
333.9
-35.6
-78.7
2.4. Transfer from risk provisions
against risk and income on
financial assets revaluation
charges
– 16.7 16.7 –
2.1.
1.2.
2009
174
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
In 2009, the NBP posted a profit of PLN 4,165 554.4 thousand. The increase in the NBP
financial result was mainly on account of realised gains on transactions in foreign exchange
reserves.
Net interest, discount and premium income/expense declined by PLN 146,536.8 thousand
(4.7%) in 2009 as compared to 2008, pushed down by the decrease in revenues by PLN 343,425.6
thousand (4.9%), with expense falling by PLN 196,888.8 thousand (5.1%).
A decrease in net interest, discount and premium income was principally due to:
• decrease by PLN 1,457,214.1 thousand (65.0%) in net income from funds in bank
accounts, mainly attributable to:
– decrease by PLN 1,231,877.8 thousand (86,9%) in net interest inflows from term deposits,
chiefly as an effect of cuts in interest rate on deposits, coupled with the drop in the their
share in the investment structure of foreign exchange reserves,
– decrease by PLN 608,937.1 thousand (90.0%) in net income from deposits (loans granted)
in foreign currency under securities reverse repo transactions mostly on account of lower
involvement in simultaneous repo and reverse repo transactions in USD,
– growth by PLN 375,675.2 thousand (273.6%) in net income from term deposits (loans
granted) in domestic currency under securities reverse repo transactions, as a result of such
operations under the Confidence Package,
• increase by PLN 1,136,839.7 thousand (24.5%) in interest income and discount on foreign
securities, mostly resulting from a higher share of discount and interest-bearing debt
securities in the investment structure of foreign exchange reserves, increased average
annual level of foreign exchange reserves and increased annualised exchange rate of the
Polish zloty against foreign currencies,
• decrease by PLN 23,500.8 thousand (22.5%) in net interest income from credits and loans,
mainly as a result of lower income from refinancing credit for central investments resulting
from the repayment of loan instalments.
5.
6.
7.
8.
9.
10.
Other income
Other administrative
expenses
Depreciation
Issue of banknotes
and coins expense
Other expenses
241 219.8 204 996.5 -36 223.3
397 443.9 413 695.3 16 251.4
266 530.3 -95 440.7
94 841.6 88 575.2 -6 266.4
339 461.5 429 360.9 89 899.4
55 792.6 36 938.7 -18 853.9
-15.0
4.1
-26.4
-6.6
26.5
-33.8
3.
4.
Net income/expense from
fees and commissions
Income from
shares/equities
-127 532.9 -123 753.6
8 679.4 12 309.9 3 630.5
2.5. Transfer to provisions
against risk and expense
on financial assets
revaluation charges
2 139 634.1 14 252 330.3 12 112 696.2 566.1
3 274.5
41.8
-3 779.3
Salaries
and social contributions
361 971.0
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
A decline by 1,292,825.5 thousand (54.6%) in interest, discount and premium expense was
mainly due to:
• decrease by PLN 1,292,825.5 thousand (54.6%) in net interest expense on accounts
operated by the NBP. This decrease was traceable to the reduction in interest on accounts
operated:
– in foreign currencies, which went down by PLN 928,987.7 thousand (90.5%), resulting
in the first place from a lower amount involved in simultaneous debt securities repo and
reverse repo transactions in USD as well as lower interest expense related mostly to
accounts of central government institutions,
– in domestic currency – a decrease by PLN 363,837.8 thousand (27.1%), mainly as a result
of lower interest on funds deposited on those accounts, in particular on minimum reserve
requirement accounts,
• growth by PLN 1,066,361.9 thousand (70.6%) in interest, discount and premium on
securities expense, primarily attributable to:
– growth by PLN 960,231.9 thousand (234.3%) in premium on foreign securities expense,
basically due to a higher share of interest-bearing debt securities in the foreign exchange
reserves investment structure and an increased annualised level of foreign exchange
reserves,
– growth by PLN 512,585.8 thousand (76.8%) in the discount on NBP money market bills
expense, primarily as a result of an increased issue of the bills on account of higher
liquidity surplus in the banking sector,
– decrease by PLN 406,455.8 thousand (94.0%) in interest on NBP bonds expense, as
a result of early redemption of the bonds on 22 January 2009.
An improvement by PLN 4,454,027.4 thousand in income/expense on financial operations
in 2009 compared to the previous year was principally fuelled by:
• growth by PLN 12,499,444.7 thousand (449.5%) in realised foreign exchange gains,
• decrease by PLN 2,646,720.1 thousand (around 100%) in unrealised foreign exchange
losses from the revaluation of assets and liabilities denominated in foreign currencies,
• growth by PLN 1,455,726.2 thousand (105.4%) in realised price gains,
• decrease by PLN 1,155,448.5 thousand (88.5%) in realised foreign exchange losses.
The impact of the above presented items on total net income/expense on financial
operations was partly set-off by changes in other items of this category of the income statement,
primarily by an increase – by PLN 12,112,696.2 thousand – in the expense related to the transfer
to a provision against the foreign exchange rate risk of the złoty.
Net income/expense from fees and commissions for 2009 was negative and amounted to
PLN 127,532.9 thousand. This represents an increase of loss by PLN 123,753.6 thousand
(3,274.5%) as compared to the previous reporting period. Commitment fees for the IMF Flexible
Credit Line (the fee amounted to PLN 182,116.7 thousand, including PLN 121,411.1 thousand
counted towards the expense in 2009) had a further dampening impact on income/expense from
fees and commissions.
175
2009
176
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
N a t i o n a l B a n k o f P o l a n d
An increase in income on shares/equities by PLN 3,630.5 thousand (41.8%) as compared to
the previous year resulted mainly from higher dividend proceeds from equities holdings in the Bank
for International Settlements in Basel and KIR SA.
Other income amounted to PLN 204,996.5 thousand, which represents a decrease by PLN
36,223.3 thousand (15.0%) compared to the corresponding results posted in 2008. Most of this
decline can be credited to lower income from the sales of collector coins, most specifically gold
coins.
Salaries and social contributions rose by PLN 16,251.4 thousand (4.1%) in 2009 as
compared to the previous year, mainly as a result of the human resources and payroll policy
adopted in the NBP.
Administrative expenses decreased by PLN 95,440.7 thousand (26.4%) in 2009 as compared
to the previous reporting period. This decline primarily resulted from the Act adopted on 23
October 2008 which amended the Bank Guarantee Fund Act and other acts (Journal of Laws No
209/2008, item 1315), whereby, in pursuance of Article 1, item 9 of the Act, the NBP was relieved
of its obligation to contribute to the Bank Guarantee Fund. In 2008, this contribution amounted
to PLN 101,651.9 thousand.
Depreciation decreased in 2009 by PLN 6,266.4 thousand (6.6%), as compared to 2008.
Lower fixed assets depreciation expense was reported, accompanied by a growth of intangible
assets depreciation expense.
The issue of coins and banknotes expense increased by PLN 89,899.4 thousand (26.5%).
This rise came as an effect of a larger scale of the issue of banknotes and coins of general
circulation as well as collector coins. The higher issue of banknotes and coins of general circulation
first and foremost addressed the need to guarantee liquidity of settlement and replenish
inventories.
Other expenses fell by PLN 18,853.9 thousand (33.8%) as compared to the previous
reporting period, which mainly resulted from a decrease in other operating expense, in particular
in the nominal value of collector coins and banknotes, taken to expenses upon sale.
Figure 23
Changes in NBP income structure in 2008 and 2009
The year 2009 saw a notable shift in income structure. The share of income rendering into
net income from financial operations expanded by 36.0%. Most notably, it grew from 36.4% in
2008 to 74.4% in 2009. The average annual depreciation of the zloty vis-a-vis foreign currencies
was the main reason for this change. As a result of the increase the share of interest, discount and
premium income went down by 34.5 percentage points (from 61.2% in 2008 to 26.7% in 2009).
Income structure in 2009
72.4%
26.7%
0.8%
0.1%
Income structure in 2008
Interest, discount and
premium income – 61.2%
Income on financial
operations – 36.4%
Other income – 2.1%
Fess and commissions
income – 0.2%
Income and shares/
equities – 0.1%
Income on financial
operations – 72.4%
Other income – 0.8%
Fess and commissions
income – 0.1%
Interest, discount and
premium income – 26.7%
2.1% 0.1% 0.2%
61.2%
36.4%
`
2009
Annual Report 2009
Independent auditor’s opinion and condensed financial statements of the National Bank of Poland as at 31 December 2009
Figure 24
Changes in NBP expense structure in 2008 and 2009
As regards the expense structure, the most significant change related to an increase in the
share of expense on financial operations – by 20.7 pp (from 55.0% in 2008 to 75.7% in 2009).
This was mainly a result of the increase by PLN 12,112 696.2 thousand in the cost of creating the
provision against the foreign exchange rate risk of the zloty. The outcome of this increase was
a diminished share of interest, discount and premium income, which fell by 16.2 pp (from 33.8%
in 2008 to 17.6% in 2009), and lower share of NBP operating expense, which fell by 4.3 pp (from
9.6% in 2008 to 5.3% in 2009).
177
Expense structure in 2009
0.2%
5.3%
0.4%
0.8%
Expense structure in 2008
55.0%
33.8%
0.8% 0.5%
9.6%
0.3%
Expense on financial
operations – 55.0%
Interest, discount and
premium expense – 33.8%
NBP operating
expense – 9.6%
Depreciation – 0.8%
Other expenses – 0.5%
Fees and commissions
expense – 0.3%
Expense on financial
operations – 75.7%
Interest, discount and
premium expense –17.6%
NBP operating expense – 5.3%
Depreciation – 0.4%
Other expenses – 0.2%
Fees and commissions
expense – 0.8%
17.6%
75.7%
2009
178 N a t i o n a l B a n k o f P o l a n d
Annual Report 2009
APPENDICES
Appendix 1
GDP and aggregate demand
In 2009 GDP growth in real terms decreased sharply (to 1.8% from 5.0% in the preceding
year60), while domestic demand declined by 0.9% (compared to a rise of 5.5% in 2008). The drop
in the growth of domestic demand was driven by a slower rise in total consumption (from 6.3%
in 2008 to 2.1% in 2009) and a marked decline in the growth of gross capital formation (from
2.9% to -11.0%, respectively). The lower growth of total consumption was the result of
a slowdown in both private consumption (from 5.9% in 2008 to 2.3% in 2009) and public
consumption (from 7.5% y/y to 1.9%, respectively). In turn, the deceleration in capital formation
was connected with a decrease in investment (-0.4% in 2009 compared to 8.2% in 2008) and
a strong reduction in inventories (contribution of -2.4 percentage points to GDP growth in 2009).
The main GDP growth factor was net exports, whose contribution to GDP growth in 2009
amounted to 2.7 percentage points.
The growth of gross value added61 in 2009 amounted to 1.9% as compared to 5.0% a year
earlier. The slower growth of gross value added in 2009 was the result of a drop in the growth of
value added in industry (from 6.6% in 2008 to -1.1% in 2009), in market services (from 5.3% to
2.5%, respectively) and in construction (from 9.1% to 4.7%).
Figure 25
Contribution of aggregate demand components to GDP growth
Source: NBP calculations based on GUS data.
In 2009, despite a relatively high growth of disposable income of households (4.3%
in constant prices), the growth of individual consumption was lower than a year earlier. The
increase in the rate of household savings was a result of deteriorating situation in the labour
market and unfavourable growth outlook.
The growth of gross investment outlays in 2009 was -0.4% compared to 8.2% in 2008.
The reduction in gross investment outlays resulted from a steep decline in the enterprise sector’s
2009
180
Appendices
N a t i o n a l B a n k o f P o l a n d
10
8
6
4
2
0
-2
-4 -6
-4
-2
0
2
4
6
8
10
1999 2000 2001 2002 20032004 2005 2006 2007 20082009
Net exports
Change in inventories
Fixed capital formation
Consumption
GDP
III IV I II III IV I II III IV I II III IV
2006 2007 2008 2009
60 All the numerical data on percentage changes of economic variables quoted in the text of the present appendix
represent annual growth rates.
61 Gross Domestic Product equals gross value added increased by taxes on products (including import duties)
and reduced by product subsidies.
2009
Annual Report 2009
Appendices
investment, stemming from a significant deceleration of economic growth in the wake of the crisis
in international financial markets and the global recession. The investment outlays of this sector
dropped despite good financial results of enterprises in 2009. In 2009 a decrease in housing
investments of households was also recorded. In turn, investment decline in the economy was
limited by a very strong increase in investment expenditure of the public finance sector.
Table 42
GDP and domestic demand in 2002–2009
Source: GUS data.
Foreign trade turnover lowered significantly in 2009, which was connected with a world
trade breakdown triggered by the global crisis. At the same time, the depreciation of zloty
exchange rate, related to the crisis, observed till February 2009 caused imports to fall stronger than
exports, which translated into a positive contribution of net exports to GDP growth
(2.7 percentage points) and a reduction in the current account deficit (from 5.1% of GDP in 2008
to 1.6% in 2009).
181
2002 2003 2004 2005 2006 2007 2008 2009
Dynamika (poprzedni rok = 100, ceny stałe)
GDP 1.4 3.9 5.3 3.6 6.2 6.8 5.0 1.8
Domestic demand 1.0 2.8 6.2 2.5 7.3 8.7 5.5 -0.9
Consumption 3.0 2.7 4.3 2.7 5.2 4.6 6.3 2.1
Individual consumption 3.4 2.1 4.7 2.1 5.0 4.9 5.9 2.3
Capital formation -7.2 3.3 14.7 1.4 16.1 24.3 2.9 -11.0
Gross fixed capital formation -6.3 -0.1 6.4 6.5 14.9 17.6 8.2 -0.4
Exports 4.8 14.2 14.0 8.0 14.6 9.1 7.1 -8.0
Imports 2.8 9.6 15.8 4.7 17.3 13.7 8.0 -13.5
Contribution of net exports to GDP
growth (percentage points)
0.5 1.0 -1.0 1.1 -1.1 -2.1 -0.6 2.7
Struktura PKB w cenach bie˝acych (
Domestic demand 103.5 102.7 102.4 100.7 101.8 102.9 104.0 99.9
Consumption 84.8 83.9 82.3 81.5 80.8 78.4 80.3 79.8
Capital formation 18.6 18.7 20.1 19.3 21.1 24.4 23.7 20.1
Net exports -3.5 -2.7 -2.4 -0.7 -1.8 -2.9 -4.0 0.1
Growth rate of GDP and its components in constant prices ( %)
GDP composition in current prices (%)
2009
182
Appendices
N a t i o n a l B a n k o f P o l a n d
Appendix 2
Prices of consumer goods and services
Price index of consumer goods and services
In 2009 the average annual price index of consumer goods and services (CPI) amounted
to 3.5%, i.e. was at the level of the NBP’s upper limit for deviations from the inflation target.
In the first months of 2009 this index showed a rising tendency (from 2.8% y/y in January to 4.0%
y/y in April); then, it fell and remained until September around the NBP’s upper limit for deviations
from the inflation target. In October the annual CPI index decreased to 3.1%, and in the two
subsequent months rose again, reaching 3.5% in December. The following factors contributed to
such a path of the consumer goods and services price index: the annual growth rate of prices of
food and non-alcoholic beverages rising in the first few months of 2009 and then gradually falling
in the subsequent part of the year, the growth rate of energy prices fluctuating and growing at
the end of the year (mainly as a result of fuel price increases), as well as the core inflation index
net of food and energy prices rising steadily until July, remaining at an unchanged level until
October and finally decreasing at the end of the year.
Prices of food and non-alcoholic beverages
The first few months of 2009 saw a strong increase in the annual growth rate of prices of
food and non-alcoholic beverages – from 3.1% in January to 5.6% in April. This was driven, on
the one hand, by a strong zloty depreciation observed until February 2009, and, on the other hand,
by the fall in the domestic supply of some agricultural and food products (mainly meat). In May,
the annual growth rate of prices of food and non-alcoholic beverages started to decline, down to
3.0% in October. The main factors behind such decline were good domestic crops, stabilization in
the prices of agricultural commodities in the global markets, and zloty appreciation recorded since
March 2009. In November and December the growth rate of food prices accelerated again to
3.4% (mainly due to a strong rise in dairy prices triggered by EU intervention in this market).
Energy prices
In the first few months of 2009 the annual growth of energy prices remained at
a heightened level (ranging between 6 and 7% in the period February–April), yet, starting from
May declined considerably, to accelerate at the end of the year (to 7.4% in December). The above
path of energy price index in 2009 was affected, on the one hand, by high, albeit gradually slowing
growth of prices of energy carriers (electricity, heat, gas and heating fuels), and, on the other hand,
by the steadily rising growth of fuels (from -18.8% in January to 12.3% in December 2009), yet
remaining negative almost throughout the whole year.
The high growth of energy prices in 2009 was largely the result of rises in regulated prices
(electricity and heat), approved by the Energy Regulatory Office. On the other hand, the negative
annual growth of fuel prices was driven by the negative base effect which was connected with
a considerable rise in fuel prices in the first half of 2008, caused by a strong rise in oil prices.
Another rise in oil prices observed throughout the whole year in the international markets
contributed to a rise in fuel prices in 2009. Yet, its impact on the prices in Poland was limited by
the appreciation of the exchange rate of the zloty against the US dollar observed since 2009 Q2.
2009
Annual Report 2009
Appendices
Inflation net of food and energy prices (core inflation)
In 2009 the annual growth in the prices of consumer goods and services net of food and
energy prices rose initially from 2.2% in January to 2.9% in July; then it remained at this level until
October and decreased to 2.6% in December. Such a rise in inflation net of food and energy prices
in annual terms was driven by a marked increase in the annual growth in prices of non-food articles
and initially – a slight increase in the growth in prices of services.
The increase in the prices of non-food articles in 2009 was mainly caused by high rises in
prices of excise goods, which translated into the high and rising growth in prices of those goods
observed in the first half of the year and slightly falling in the second half of the year.62
The increase in the prices of non-food articles was also driven by the rising growth in prices of
imported goods (clothes, footwear, electronic equipment, cars), being the result of the previous
zloty depreciation.
On the other hand, the annual growth in prices of services in 2009 Q1 weakened gradually,
yet, persisting at a relatively high level. This was largely the result of high, albeit falling since June
2009, growth of prices of services connected with home maintenance, part of which (rentals
charges, community services) are regulated prices.
Table 43
Changes in prices in the main groups of consumer goods and services in 2008–2009
183
62 Under the process of adjusting excise tax rates in Poland to the minimum rates required by the EU legislation,
in January 2009 a higher excise tax rate on tobacco products was introduced. Excise tax rate on alcoholic beverages
was increased in March 2009.
CPI
Food and
non-
-alcoholic
beverages
Energy
of which:
fuels
Inflation
net of food
and
energy
prices
energy
carriers Goods
of which:
excise
products
(alcohol,
tobacco)
other
goods
Services home
maintenance
other
serv
-ices
Structure of weights in CPI basket (%)
Change in relation to the corresponding period of the previous year (%)
2008
2009
Jan 2008
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
100.0
100.0
4.0
4.2
4.1
4.0
4.4
4.6
4.8
4.8
4.5
4.2
3.7
3.3
25.7
24.6
7.8
7.3
7.0
6.8
7.0
7.6
7.8
6.9
5.1
4.0
2.9
3.2
15.0
15.3
6.9
8.6
7.8
6.8
9.0
9.3
9.9
9.8
9.5
9.7
8.2
5.6
10.9
11.0
3.4
6.8
7.0
7.2
9.8
10.0
10.6
10.9
11.7
12.7
14.0
13.8
4.2
4.3
17.0
13.8
10.1
6.0
7.0
7.5
8.2
6.8
3.7
1.9
-6.4
-15.0
59.3
60.1
1.6
1.8
2.0
2.1
2.1
2.2
2.2
2.7
2.9
2.9
2.9
2.8
31.7
32.0
0.3
0.4
0.7
0.6
0.5
0.5
0.3
0.4
0.7
0.7
0.8
0.6
5.7
5.6
5.4
5.6
5.7
5.9
6.0
5.8
5.6
6.4
7.1
7.5
8.1
8.2
26.0
26.4
-0.8
-0.7
-0.4
-0.5
-0.7
-0.6
-0.9
-1.0
-0.8
-0.8
-0.8
-1.1
27.6
28.1
3.2
3.3
3.5
3.7
3.8
4.1
4.3
5.4
5.5
5.5
5.4
5.3
6.0
6.1
8.8
9.2
9.5
9.5
9.8
9.9
10.1
10.3
10.2
10.3
10.3
10.3
21.6
22.0
1.7
1.7
1.9
2.2
2.2
2.5
2.8
4.1
4.1
4.1
4.1
3.9
Jan 2009
Feb
Mar
Apr
May
Jun
Jul
2.8
3.3
3.6
4.0
3.6
3.5
3.6
3.1
3.4
4.8
5.6
5.2
4.7
4.0
4.9
6.9
6.3
6.6
4.6
5.0
5.3
14.8
14.4
13.9
13.8
11.1
10.6
10.1
-18.8
-12.1
-12.5
-11.4
-11.5
-8.5
-6.0
2.2
2.4
2.5
2.6
2.8
2.7
2.9
0.2
0.4
0.6
1.0
1.2
1.3
1.8
7.8
8.3
9.2
9.8
10.0
10.2
12.1
-1.4
-1.3
-1.2
-0.8
-0.6
-0.5
-0.3
4.5
4.7
4.7
4.5
4.5
4.3
4.2
8.4
8.4
8.5
8.5
8.5
8.3
8.1
3.4
3.7
3.6
3.4
3.4
3.2
3.1
2009
184
Appendices
N a t i o n a l B a n k o f P o l a n d
Source: GUS data, NBP calculations.
Share in CPI (pp)
Aug
Sep
Oct
Nov
Dec
J–D 2008
J–D 2009
Jan 2008
Jan 2009
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
J–D 2008
J–D 2009
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
3.7
3.4
3.1
3.3
3.5
4.2
3.5
4.0
4.2
4.1
4.0
4.4
4.6
4.8
4.8
4.5
4.2
3.7
3.3
2.8
3.3
3.6
4.0
3.6
3.5
3.6
3.7
3.4
3.1
3.3
3.5
4.2
3.5
4.5
3.6
3.0
3.4
3.4
6.1
4.1
2.0
1.9
1.8
1.7
1.8
1.9
2.0
1.7
1.3
1.0
0.8
0.8
0.8
0.8
1.2
1.4
1.3
1.2
1.0
1.1
0.9
0.7
0.8
0.8
1.6
1.0
5.2
5.0
4.2
5.3
7.4
8.4
5.5
1.0
1.3
1.2
1.0
1.3
1.4
1.5
1.5
1.4
1.5
1.2
0.9
0.7
1.0
1.0
1.0
0.7
0.8
0.8
0.8
0.8
0.6
0.8
1.1
1.3
0.8
9.8
8.9
7.5
5.9
5.8
9.9
10.4
0.4
0.7
0.8
0.8
1.1
1.1
1.1
1.2
1.3
1.4
1.5
1.5
1.6
1.6
1.5
1.5
1.2
1.2
1.1
1.1
1.0
0.8
0.7
0.7
1.1
1.2
-6.0
-4.9
-4.6
3.7
12.3
4.7
-6.9
0.6
0.5
0.4
0.2
0.3
0.3
0.4
0.3
0.2
0.1
-0.3
-0.7
-0.8
-0.5
-0.5
-0.5
-0.5
-0.4
-0.3
-0.3
-0.2
-0.2
0.2
0.5
0.2
-0.3
2.9
2.9
2.9
2.8
2.6
2.3
2.7
1.0
1.1
1.2
1.2
1.2
1.3
1.3
1.6
1.7
1.7
1.7
1.6
1.3
1.4
1.5
1.6
1.6
1.6
1.8
1.8
1.7
1.7
1.7
1.5
1.4
1.6
1.7
1.7
1.9
1.8
1.8
0.5
1.3
0.1
0.1
0.2
0.2
0.2
0.2
0.1
0.1
0.2
0.2
0.2
0.2
0.1
0.1
0.2
0.3
0.4
0.4
0.6
0.5
0.6
0.6
0.6
0.6
0.2
0.4
10.3
9.4
8.9
8.3
8.0
6.4
9.4
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.4
0.4
0.4
0.5
0.5
0.4
0.5
0.5
0.5
0.5
0.6
0.7
0.6
0.5
0.5
0.5
0.5
0.4
0.5
-0.2
0.1
0.4
0.4
0.5
-0.8
-0.4
-0.2
-0.2
-0.1
-0.1
-0.2
-0.2
-0.2
-0.3
-0.2
-0.2
-0.2
-0.3
-0.4
-0.3
-0.3
0.2
-0.2
-0.1
-0.1
0.0
0.0
0.1
0.1
0.1
-0.2
-0.1
4.3
4.1
4.1
3.9
3.4
4.4
4.3
0.9
0.9
1.0
1.0
1.1
1.1
1.2
1.5
1.5
1.5
1.5
1.5
1.3
1.3
1.3
1.3
1.3
1.2
1.2
1.2
1.2
1.1
1.1
1.0
1.2
1.2
7.9
7.8
7.6
7.5
7.4
9.9
8.1
0.5
0.5
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.6
0.5
3.2
3.1
3.1
2.9
2.2
2.9
3.2
0.4
0.4
0.4
0.5
0.5
0.5
0.6
0.9
0.9
0.9
0.9
0.8
0.8
0.8
0.8
0.8
0.7
0.7
0.7
0.7
0.7
0.7
0.6
0.5
0.6
0.7
2009
Annual Report 2009
Appendices
185
Appendix 3
Balance of payments63
In 2009 the current account deficit of the balance of payments amounted to EUR 5.0 billion
(as compared to EUR 18.3 billion in 2008). The current account deficit to GDP ratio went down
from 5.1% in 2008 to 1.6% in 2009. The improvement in the current account balance was
primarily driven by a reduction in the trade deficit in goods. In turn, the increase in the deficit
in income and decline in current transfers surplus had the opposite effect.
In line with preliminary GUS estimates, the deficit in the Polish foreign trade fell down from
EUR 26.2 billion in 2008 to EUR 8.7 billion in 2009.64 The greatest impact on lowering the negative
trade balance was exerted by the occurrence of positive balance in the trade with EU-15countries65
(EUR 6.9 billion compared to a deficit of EUR 3.6 billion in 2008). Moreover, the negative trade
balance with Russia and China decreased. On the other hand, the lowering of the positive balance
in trade with Central and Eastern European countries had the opposite effect.
The decline in trade volumes was a global phenomenon in 2009 – according to the estimates
of the Netherlands Bureau for Economic Policy Analysis (CPB), the volume of global trade fell by
12.9% as compared to 2008. The deepest slump was recorded in the first half of the year and in
the following months the decline decelerated, which was connected with the introduction of
stimulus packages in many economies. In the final months of 2009, due to the growing demand,
primarily in the emerging economies of Asia, the volume of global trade edged up slightly.
The value of Polish exports in 2009 fell by 17.1%. The smallest reduction (of 13.8%) was
recorded in exports to EU-15 countries, which reflected this region’s relatively weakest decline in
economic activity amongst Poland’s main trading partners (EU-15 GDP contracted by 4.3%). The
value of Polish exports of consumer goods to the EU-15 rose by 0.6% in comparison to 2008
(including an increase in passenger cars of 13.9%), which was connected with measures taken by
governments of many EU-15 countries aimed at halting the downwards trend of households’
spending and also with the strong depreciation of the zloty exchange rate against the euro
observed until February 2009. However, the reduction in inventories combined with a strong dip
in exports of EU-15 countries led to a considerable reduction of their demand for intermediate
goods. This was reflected in decreased exports of this most important category of goods
– accounting for 55% of the value of Polish exports to the EU-15 – which fell by over 25%
as compared to 2008.
The decline in exports to Central and Eastern European (CEE) countries, which in 2008
accounted for 16.2% of Polish exports, proved considerably deeper (a drop of 22.6% in
comparison to 2008). This was not only related to a stronger slump in economic activity in the
region as compared to the EU-15 (GDP in nine CEE countries66 decreased in 2009 by the total of
7.2%), but also to a marked reduction of the scale of corporate trade among branches of foreign
enterprises, which is strongly affected by the demand in EU-15 countries and exports to non-EU
markets. In consequence, the decline in the value of Polish exports of consumer and investment
goods to CEE countries was considerably deeper than the drop in total exports of those goods to
EU-15 countries, while the scale of the decline in intermediate goods exports was very similar to
that of exports to EU-15 countries.
63 If not specified otherwise, all the data discussed in Appendix 3 refer to values denominated in euros.
64 This resulted from a considerably deeper decline in the volume of imports (of 16.0%) than exports (of 9.3%).
The drop in the value of turnover was additionally deepened by a strong decline in transaction prices expressed
in euros (by 12.2% in imports and 8.6% in exports).
65 I.e. those countries which had formed the European Union before it was enlarged in 2004.
66 The CEE region includes: Bulgaria, the Czech Republic, Estonia, Lithuania, Latvia, Romania, Slovakia, Slovenia
and Hungary.
2009
186
Appendices
N a t i o n a l B a n k o f P o l a n d
Amongst Poland’s main trading partners the deepest drop in exports (of almost 40%) was
observed in the trade with the countries of the Commonwealth of Independent States, which in
2008 accounted for 10.5% of Polish exports. This was connected with the fact that the region was
hit most strongly by the global financial crisis: Russia’s GDP lowered in 2009 by 7.9% and
in Ukraine by as much as 15.1%.
In 2009 the value of Polish imports contracted by 26.3%. The scale of Polish import decline
was greater than in the case of most other EU countries (despite the fact that Poland was in 2009
the only country in the European Union which recorded GDP growth), which was connected with
the depreciation of the zloty exchange rate observed from August 2008 to February 2009.
In comparison to other countries the scale of import decline in the category of consumer goods
was the largest. In turn, the scale of decline in intermediate goods imports was similar to those
in other EU countries. This decline resulted, on the one hand, from lowering demand of Polish
enterprises from the export sector and, on the other, from lower commodity prices than in 2008
(in particular the prices of crude oil). The strongest drop in imports (of over 30%) was recorded
in the category of investment goods.
Table 44
Selected warning indicators (in %)
Source: NBP calculations.
Until February 2009 the exchange rate of the zloty had weakened markedly but starting
from March it was gradually strengthening. In 2009 Q1, the nominal zloty exchange rate
depreciated by 13% against the euro and 20% against the US dollar, while in 2009 Q2, Q3 and
Q4 it appreciated by 5%, 6% and 3%, respectively, against the euro and 10%, 9% and 1%
against the US dollar. In the whole of 2009 the nominal exchange rate of the zloty appreciated
against the euro and the US dollar, respectively, by 2% and 4%. The real effective exchange rate
of the zloty deflated by the index of unit labour cost in manufacturing (ULC)67 in 2009 Q1
67 One measure to assess changes in the competitive position of producers in international markets is an index reflecting
production costs. Moreover, as most of trade exchange involves products of manufacturing industry, an adequate
competitiveness measure is the real exchange rate deflated by the unit labour costs precisely in manufacturing
industry. The calculations made use of quarterly ULC data for 2009, the data for 2009 Q4 are estimates.
2004 2005
-4.0 -1.2 -2.7 -4.7 -5.1 -1.6
-3.5 -0.9 -2.1 -3.6 -4.0 0.0
-2.2 -0.9 -2.0 -4.0 -4.9 -1.0
-9.4 -2.9 -5.9 -10.1 -11.2 -3.6
116.1 184.4 115.8 90.0 43.6 123.5
Warning indicator 2006 2007 2008 2009
Current account balance/GDP
Current and capital account
balance/GDP
Balance on trade in goods/GDP
Current account balance/current
account inflows
Direct investment/current account
balance
1.4
32.3
4.7
1.1
35.4
4.0
46.5 45.9 47.3 51.0 47.7 63.5
1.0
29.7
3.9
0.6
35.0
3.9
-1.7
35.6
3.3
2.1
–
5.5
(Current account balance
+ capital account balance
+ direct investment)/GDP
Foreign debt servicing/exports
of goods and services
Official reserve assets expressed
in terms of monthly imports
of goods and services
Foreign debt/GDP
2009
Annual Report 2009
Appendices
187
weakened by 14%, in Q2 remained virtually unchanged and in the second half of the year
appreciated by approx. 2.5%. In the whole of 2009 the ULC-deflated real effective exchange rate
depreciated by 12%.
In 2009 financial indicators of the external equilibrium in the Polish economy improved.
The lowered trade deficit in goods had a positive impact on the ratios of current account balance
to GDP and current and capital account balance to GDP. The reduction of current account deficit
in 2009 was also supported by a rise in the positive balance of capital account due to the growing
utilisation of EU funds classified in this account. Although the global financial crisis contributed to
a decreased inflow of direct investment, their ratio to current account deficit amounted to 124%
(as compared to 44% in the preceding year).
2009
188
Appendices
N a t i o n a l B a n k o f P o l a n d
Appendix 4
Money and credit68
Loans to households
In 2009 the nominal value of households’ bank debt increased by PLN 43.8 billion to approx.
PLN 412 billion, while in the whole of 2008 the growth in households’ bank debt amounted
to PLN 113.8 billion. The growth rate of household loans decreased to 12.4% y/y in December
2009 (against 31.7% y/y in December 2008).
Housing loans which saw the fastest growth in 2008, declined to 12.5% y/y in December
2009 (as compared to 39.1% in December 2008). Yet, the average monthly growth in housing
loans in the second half of 2009 increased to PLN 2.4 billion as compared to PLN 1.7 billion in the
first half of 2008, which may indicate an improvement in the situation in this market.
Figure 26
Year-on-year and month-on-month changes in household loans
Source: NBP data.
In 2009 banks gradually adjusted their housing loan policy to the improving economic
climate. Their capital situation also improved, which additionally contributed to the easing of the
credit policy. As suggested by the results of the conducted surveys69, in 2009 the number of banks
tightening their housing loan terms declined steadily, and starting from 2009 Q3 some banks
decided to ease them.
In 2009 as a result of the limited availability of housing loans denominated in Swiss francs,
households used mainly domestic currency loans to finance their real estate purchases. In the past
10
8
6
4
2
0
-2
I V
2004 2005 2006 2007 2008 2009
IX I V IX I V IX I V IX I V IX I V IX
50
40
30
20
10
0
-10
PLN billion PLN billion
Consumer (m/m, lhs) Housing (m/m, lhs)
Consumer (y/y, rhs) Housing (y/y, rhs)
68 If not indicated otherwise, the growth rates presented below refer to figures adjusted for the impact of fluctuations
of the exchange rate of the zloty against the main currencies.
69 Senior loan officer opinion survey on bank lending practices and credit conditions (4th quarter 2009), www.nbp.pl.
2009
Annual Report 2009
Appendices
few months of 2009 the share of housing loans denominated in PLN in newly granted loans was
close to 90%.
Figure 27
Currency structure of the newly granted housing loans to households
Note: Calculations were based on the information obtained for interest rate reporting purposes from the sample of 20 selected banks
whose share in the market of non-financial sector loans accounts for approx. 75%.
Source: NBP data.
The growth in consumer loans in 2009 declined to 11.9% y/y in December (as compared
with 30.8% y/y in December 2008). The average monthly growth in consumer loans in the first
half of 2009 amounted to PLN 1.8 billion, and in the second half of 2009 to PLN 1.2 billion, which
was connected with the progressing tightening of loan granting criteria caused by worse economic
situation and increased share of classified loans in the portfolios of financial institutions.
Loans to enterprises
The nominal value of corporate debt to banks decreased in 2009 by PLN 8.7 billion
to approx. PLN 209 billion (in 2008 corporate debt growth amounted to approx. PLN 48 billion).
Growth in corporate loans decreased to -3.6% y/y in December 2009 (as compared with 24.2%
y/y in December 2008). Observed decline in lending was due to the tightening of loan terms and
increased uncertainty about the future economic situation.
Deceleration in lending was largely the result of a fall in short-term loans (-10.6% y/y
in December 2009). An important factor limiting the demand for short-term loans in the last few
months of 2009 was the improvement in the liquidity situation of enterprises. The growing sales
results recorded in this period and the effects of the previously implemented restructuring allowed
economic entities for gradual adjustment to the still limited supply of credit facilities resulting from
the banks’ tight credit policy. As suggested by the survey studies70 the tightening of loan criteria
affected mainly loans to small and medium-sized enterprises. The major reason behind tightening
the loan granting criteria was banks’ unfavourable assessment of the outlook for economic
situation. On the other hand, the role of banks’ capital situation as the factor limiting lending
decreased gradually.
189
100
90
80
70
60
50
40
30
20
10
0
2007 2008 2009
I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII
per cent
PLN FX
70 Senior loan officer opinion survey on bank lending practices and credit conditions (4th quarter 2009), www.nbp.pl.
2009
190
Appendices
N a t i o n a l B a n k o f P o l a n d
Figure 28
Year-on-year and month-on-month changes in loans to enterprises
Source: NBP data.
2009 saw also a deceleration in the growth of long-term corporate loans : in the segment
of real estate loans this growth declined to 3.7% y/y in December 2009 (as compared to 30.1%
y/y in December 2008), and in the segment of investment loans – to 1.5% y/y (as compared to
29.7% y/y). Limited lending was the effect of low corporate investment activity caused by the
economic slowdown. Gradual investment completion process was not accompanied by of new
projects of similar scale as in the pervious years.
Deposits
Gradual rebound in economic activity in the second half of 2009 – especially
in manufacturing – was coupled with an improvement in enterprises liquidity situation. Due to the
decline in investment activity and the concurrent increase in income from sales of enterprises, the
value of corporate deposits increased in the second half of 2009 by PLN 18.5 billion as compared
with PLN 6.2 billion a year before. In the whole of 2009 this growth amounted to PLN 16 billion
as compared to PLN 3 billion in 2008. As a result, the growth in corporate assets in bank accounts,
after reaching its minimum in April 2009 (-3.7% y/y), increased to 10.6% y/y at the end
of December 2009.
Increase in liquid assets in bank accounts mitigated the unfavourable impact of the limited
availability of short-term loans to finance enterprises’ activities. Moreover, the improvement in the
financial situation in this sector translated into a rise in the estimated percentage of approved loan
applications, which at the end of 2009 amounted to approx. 80%, while at the beginning of the
year it was below 70%.71
5
4
3
2
1
0
-1
-2
-3
-4
-5
-6
XII
2003 2004 2005 2006 2007 2008 2009
IV VIII XII IV VIII XII IV VIII XII IV VIII XII IV VIII XII IV VIII XII
PLN billion PLN billion
30
25
20
15
10
5
0
-5
-10
-15
-20
-25
-30
-35
Short-term loans (m/m, lhs)
Investment and real estate loans (m/m, lhs)
Short-term loans (y/y, rhs)
Investment and real estate loans (y/y, rhs)
71 Economic climate in the enterprise sector in 2009 Q4 and expectations for 2010 Q1, www.nbp.pl.
Figure 29
Year-on-year and month-on-month changes in bank deposits of households and enterprises
Source: NBP data.
The majority of 2009 saw a falling trend in the growth of household deposits, which
decreased to 15.2% y/y in December 2009 (as compared to 24.2% y/y in December 2008).
The observed slowdown in the growth of bank deposits was largely caused by the statistical base
effect, connected with the change in the structure of household financial assets observed in 2008.
Monetary aggregates
In 2009 the growth of M3 aggregate declined to 8.3% y/y in December as compared with
17.1% y/y in December 2008. Reduced scale of monetary expansion was largely the result
of developments in the corporate and household loan market. Along with the gradual limiting
of the decline in debt growth -mainly in the segment of household loans – in the second half
of 2009, the annual growth of M3 broad money stabilized at approx. 7–8%.72 The decline in the
growth of household deposits was counterbalanced with higher increase in assets deposited
in corporate accounts.
In 2009 the growth of M1 aggregate increased to 11.3% y/y in December (as compared
to 3.1% y/y in Decem ber of the previous year), which was the result of a relatively high increase
in assets in current accounts of households (by PLN 41.4 billion) and enterprises (by PLN 4.7 billion).
The growth of less liquid money components (M3–M1) fell to 4.9% y/y in December 2009
as compared with 37.9 y/y in December 2008. The observed changes were largely the result of the
statistical base effect, connected with a high rise, in 2008, in household savings in fixed-term
deposits up to 2 years, caused by changes in the structure of their financial assets.
2009
Annual Report 2009
Appendices
191
20
15
10
5
0
-5
-10
XII
2003 2004 2005 2006 2007 2008 2009
IV VIII XII IV VIII XII IV VIII XII IV VIII XII IV VIII XII IV VIII XII
PLN billion PLN billion
80
60
40
20
0
-20
-40
Deposits of enterprises (m/m, lhs)
Deposits of households (m/m, lhs)
Deposits of enterprises (y/y, rhs))
Deposits of households (y/y, rhs)
72 An exception was October when money supply significantly deviated from the trend as a result of the increase
in non-monetary deposits of financial institutions by PLN 13 billion. This phenomenon was connected with the
individual and institutional investors depositing their funds on brokerage accounts, intended for the purchase
of shares of Polska Grupa Energetyczna. In the case of households funds intended for the purchase of shares were
largely obtained from loans for the purchase of securities (not classified as consumer loans). After reduction of more
than 90% of orders, funds returned to the ordering parties.
2009
192
Appendices
N a t i o n a l B a n k o f P o l a n d
Figure 30
M3 and M1 monetary aggregates, currency in circulation and reserve money
of the central bank
Source: NBP data.
100
90
80
70
60
50
40
I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV
2004 2005 2006 2007 2008 2009
PLN billion per cent
35
30
25
20
15
10
5
0
-5
-10
Currency in circulation (lhs)
M3 (y/y, rhs)
M1 (y/y, rhs)
Reserve money (y/y, rhs)
2009
Annual Report 2009
Appendices
193
Appendix 5
Minutes of Monetary Policy Council decision-making meetings
held in 2009
Minutes of the Monetary Policy Council decision-making meeting held on
27 January 2009
During the meeting the Monetary Policy Council discussed the outlook for inflation in the
context of the past, current and, primarily, anticipated economic situation.
The discussion at the meeting focused on the outlook for economic growth and inflation
abroad and in Poland, zloty exchange rate developments and credit market conditions.
The Council paid a lot of attention to the domestic economic growth. It was pointed out
that the recession in the external environment of the Polish economy and the accompanying
decline in foreign demand for Polish goods had increasing impact on the activity in the domestic
economy which is corroborated, among other things, by further fall in industrial output in
December. Considerable reduction in demand, in particular for the products of exporting
enterprises, is also signalled by the results of the NBP business climate surveys. It was emphasized
that deteriorating outlook for sales translated into investment dampening and, consequently,
contributed to faster than previously expected slowdown in GDP growth.
While discussing the outlook for economic growth in Poland it was noted that it was largely
dependent on the foreign economic situation. In this context, the deepening recession in the
United States and in the euro area was pointed out together with a risk of further downward
revisions of economic growth forecasts for Poland’s main trading partners. The risk is related to the
negative impact of the global financial crisis on the situation in the labour markets in those
countries and, consequently, on households’ income and consumption. The protracted recession
in the external environment of the Polish economy may delay the improvement in the domestic
business activity relative to previous assessments. Some members of the Council emphasized that
this might translate into even stronger curbing of the investment activity of enterprises;
consequently, the contribution of investment to GDP growth in 2009 might be negative. It was
argued that economic slowdown in Poland, through decreasing labour demand and declining
wage growth, would contribute to limiting households’ consumption growth. Another factor
curbing domestic demand may be a reduction in general government expenditure, which – if
concerning investment outlays – will additionally negatively affect GDP growth in the longer term.
Some members of the Council argued that implementation of projects financed with EU funds by
local government entities would contribute to maintaining the growth of the general government
investment expenditures.
While discussing inflation developments, attention was paid to the slightly stronger than
expected decline in inflation in December 2008 to 3.3%, i.e. below the upper limit for deviations
from the NBP’s inflation target. It was indicated that the decrease in inflation had been largely
driven by falling fuel prices, yet, it was emphasized that core inflation had also declined.
While addressing the outlook for inflation, it was assessed that in the coming months
inflation should gradually decline to the inflation target (2.5%). At the same time, some members
of the Council emphasized that considerable depreciation of the zloty exchange rate observed in
the past few months and possible further raises in administered prices would be factors conducive
to price increases. In this context, attention was paid, among other things, to possible increases in
2009 of excise tax on fuels aimed at compensating some of the decline in government budget
revenues, which would translate into higher prices. Other members of the Council argued that the
pass through of exchange rate changes into inflation might be limited amidst economic slowdown,
2009
194
Appendices
N a t i o n a l B a n k o f P o l a n d
and raises in administered prices are beyond the direct impact of monetary policy. Those members
also emphasized that rises in administered prices limited households’ purchasing power, which in
an economic downturn would additionally curb their demand. During the discussion attention was
also paid to uncertainty relating to changes in inflation in the near term connected with commodity
price developments in the global markets and with the GUS changing the weights in the
households’ consumption basket.
The majority of the Council members stressed that amidst declining inflationary pressure,
monetary policy should focus more on counteracting excessive slowdown of economic growth,
thus contributing to maintaining price stability in the medium term. In the opinion of some Council
members, this justified a significant reduction of the NBP interest rates so that – considering the
time lags in the transmission mechanism – the effects of such measures could translate, as soon as
possible, into strengthening the domestic demand. Some Council members were of the opinion
that the easing of the monetary policy should also be accompanied by the implementation of the
government loan guarantee system supporting economic growth.
While discussing the exchange rate developments, it was emphasized that the recently
observed considerable depreciation of the zloty exchange rate resulted mainly from the increase in
risk aversion in the global financial markets leading to capital outflow from the emerging markets,
which was reflected in a rise of bond yields and CDS rates. Some Council members pointed out
that the scale of zloty depreciation was higher than that of other currencies of the Central and
Eastern Europe despite interest rates in Poland had been lowered to a lesser extent than in other
countries of the region. In their opinion, this meant that the impact of the interest rate disparity
on the exchange rate had recently been limited. At the same time, those Council members
indicated that under current circumstances the outlook for economic growth in Poland and the
resulting situation of the public finance sector were of higher importance for the zloty exchange
rate developments. In the opinion of some Council members, a strong reduction of interest rates
aimed at counteracting excessive economic slowdown might therefore contribute to the
strengthening of the zloty exchange rate in the medium term. Additionally, they argued that
consolidating lowering the NBP interest rates to the level consistent with both maintaining price
stability and supporting economic activity, would be conducive to fading of expectations for
further NBP interest rates reductions, which should limit the pressure for zloty depreciation. Other
members of the Council assessed, however, that too strong lowering of the NBP interest rates
might boost expectations of financial market participants as to overall scale of further interest rates
reductions. Moreover, they pointed out that the too rapid easing of the monetary policy by the
Council might be perceived as a sign of considerable deterioration in the outlook for Polish
economy, and thus contribute to further depreciation of the zloty exchange rate. Those Council
members also emphasized that the domestic foreign exchange market was at present relatively
shallow bringing about the risk of further strong zloty depreciation which should be accounted for
while deciding on the scale of the NBP interest rates reduction.
While analyzing the factors affecting exchange rate developments specific for the Polish
economy, some members of the Council argued that the zloty depreciation might have been
strengthened by Polish enterprises having to conclude previously signed options contracts by
purchasing foreign currency at the market. On the other hand, some Council members pointed out
that declarations of the Government about its commitment to meet the timetable of Poland’s euro
area accession could have contributed to limiting the scale of zloty depreciation. In this context,
it was noted that a possible postponement of euro adoption might have a negative impact on
zloty exchange rate developments.
While discussing the impact of zloty depreciation on the economy it was indicated that
exchange rate depreciation negatively affected the financial condition of enterprises engaged in
options contracts and increased the zloty value of debt of economic entities (enterprises,
households and public finance sector) denominated in foreign currencies, which would be
conducive to curbing their expenditures. Moreover, it was pointed out that rising import prices
driven by weaker exchange rate would – through higher costs of imported commodities and
2009
Annual Report 2009
Appendices
195
intermediate goods – negatively affect the economic activity in Poland. On the other hand, it was
noted that improved competitiveness of Polish products on foreign markets, related to zloty
depreciation, would limit the negative impact of recession in the external environment on Polish
exports. It was argued that depreciation would also lead to rising zloty value of EU funds which –
combined with a possible fall in prices of construction and assembly works, signalled by the results
of the GUS business condition surveys – might constitute a factor supporting the implementation
of investment projects financed with EU funds. It was emphasized that depreciation bringing about
a rise in the prices of imported goods, would favour the growth of domestic demand for domestic
goods to the detriment of imported goods which would contribute to reducing the imbalance of
Polish trade.
While analyzing the credit market situation it was pointed out that although monetary data
had not as yet signalled strong slowdown in credit growth, in 2008 Q4 banks considerably
tightened their lending policy and some of them retreated from granting housing loans
denominated in foreign currencies. In this context, some Council members argued that decisions
about lowering the NBP interest rates were of considerable importance for bank lending as they
contributed to decreasing the costs of zloty denominated loans. It was also pointed out that since
the beginning of the process of the NBP interest rates lowering in November 2008, the 3-month
WIBOR rate decreased by more than 100 basis points which confirmed that despite market interest
rates remaining at an elevated level relative to the reference rate, the Council’s decisions had
a considerable impact on market interest rates.
While analyzing the situation in the banking sector it was pointed out that offering high
interest rates on term deposits was accompanied by rising loan margins by banks. Some Council
members argued that by the time the previously opened deposits terminate, banks might tend to
maintain the cost of newly granted loans at an increased level even despite reduction in the NBP
interest rates. Moreover, in the opinion of those Council members too deep lowering of the
interest rates through decreasing banks’ incomes from servicing previously granted loans –
provided their interest depends directly on interest rates in the interbank market – might result in
deteriorating financial results of banks and, consequently, constitute a factor limiting lending.
Those members argued that easing the monetary policy should be implemented in such a pace as
to allow banks to gradually adjust to changing business conditions.
While discussing the level of interest rates it was pointed out that considering the rapid
downturn in the economy and decline in inflationary pressure many central banks had recently
continued to ease their monetary policy. Some members of the Council argued that provided there
were no or small reductions in the interest rates in Poland, this would lead to a rise in interest rate
disparity. Other Council members noted, however, that at present it was difficult to assess the
impact of the considerable monetary policy easing introduced by major central banks on the
economy and financial system stability; therefore, changes in interest rates in other countries
should not be followed automatically.
While discussing the decision on interest rates, the Council assessed that the signs of
stronger and faster than expected slowdown in the global and Polish economic activity combined
with further decline in inflationary pressure spoke of lowering the NBP interest rates. In the opinion
of some Council members reduction of the interest rates should be implemented gradually and its
scale at the January meeting should be smaller than in December 2008, especially in view of the
easing of the monetary conditions resulting from considerable depreciation of the zloty exchange
rate. According to those members of the Council, too strong lowering of the NBP interest rates at
the current meeting posed a risk of further depreciation of the exchange rate which favoured
gradual adjustment of interest rates. Moreover, those members pointed out that too strong
lowering of interest rates at the current meeting might excessively boost market expectations as to
the total scale of interest rate reduction. Other members of the Council emphasized, however, that
in view of the fast deteriorating outlook for domestic economic growth, it was necessary to lower,
as soon as possible, the interest rates to the level supporting the economic activity in Poland. In the
opinion of those Council members considerable reduction of the NBP interest rates would
2009
196
Appendices
N a t i o n a l B a n k o f P o l a n d
counteract limiting of banks’ lending, and consequently, too strong decline in domestic demand.
They argued that the Council’s decisions aimed at supporting GDP growth in view of the falling
inflationary pressure might lead to strengthening of the zloty exchange rate. The Council also
discussed the scale of possible further lowering of the NBP interest rates.
Motions to lower the NBP interest rates by 25 basis point, by 50 basis points and by 75 basis
points were put forward. The motion to lower the NBP interest rates by 75 basis points was passed,
therefore the motions to lower the NBP interest rates by 25 basis points and by 50 basis points
were not put to voting. The Council decided to lower the NBP interest rates to the level: the
reference rate to 4.25%, the lombard rate to 5.75%, the deposit rate to 2.75% and the rediscount
rate to 4.50%.
Minutes of the Monetary Policy Council decision-making meeting held on
25 February 2009
During the meeting the Monetary Policy Council discussed the outlook for inflation in the
context of the past, current and, primarily, anticipated economic situation.
The discussion at the meeting focused on the zloty exchange rate developments, the outlook
for economic growth in Poland and abroad and credit market conditions. The Council discussed
the influence of those factors on the future inflation developments in Poland in view of the
February projection of inflation and GDP.
The Council paid a lot of attention to exchange rate developments. It was pointed out that
the currencies of Central and Eastern Europe, including the zloty, had weakened significantly since
the previous meeting of the Council. It was emphasized that the depreciation of those currencies
was triggered, inter alia, by the deteriorating economic outlook for the countries of the region,
including concerns over macroeconomic stability of some of those countries. An increase in the
global aversion to risk, resulting in capital outflow from the emerging markets, fears of financing
large trade deficits in some countries, and foreign exchange transactions by short-term investors
were also considered as factors conducive to the depreciation of the currencies of the region,
including the zloty. It was pointed out that the scale of zloty depreciation resulting from a relatively
larger liquidity of the Polish foreign exchange market did not reflect the comparatively favourable
condition and outlook for economic growth in Poland. Some Council members pointed out that
the zloty depreciation might have been additionally strengthened by demand for foreign currency
of Polish enterprises engaged in option contracts.
The Council also discussed the impact of changes in the NBP interest rates on the zloty
exchange rate developments. Some members of the Council argued that in a period of high
exchange rate volatility a considerable interest rates reduction may increase the risk of further
depreciation of the exchange rate. Other Council members emphasized that the impact of the
interest rate disparity on the zloty exchange rate had recently been limited. They pointed out that
the economic outlook for Poland constitutes the factor influencing the zloty exchange rate
developments. According to those members of the Council, easing the monetary policy will
counter the excessive deterioration of economic growth and, therefore, it may be a factor
conducive to strengthening of the zloty exchange rate in the medium term.
While analyzing the impact of the zloty depreciation on the economy, it was pointed out
that the weakening of the exchange rate contributes to reducing the domestic demand by
increasing households’ and enterprises’ expenditure on servicing financial obligations denominated
in foreign currencies. On the other hand, it was pointed out that the zloty depreciation improves
the competitiveness of Polish exports, and, contributing to the rise in prices of imported goods, is
conducive to the increase in competitiveness of Polish producers in the domestic market. It was
also indicated that the zloty exchange rate depreciation leads to a rise in the zloty value of EU
funds.
2009
Annual Report 2009
Appendices
197
While discussing the impact of the zloty depreciation on the credit market situation, some
Council members indicated that as a result of the weakening of the Polish currency the zloty value
of bank assets denominated in foreign currencies increases. Without raising the capital it may lead
to a decrease in banks’ capital adequacy ratios and, in consequence, may be conducive to further
reduction of lending.
While analyzing the impact of the zloty depreciation on the budget deficit and public debt,
the Council members indicated that the exchange rate depreciation increases public spending on
contributions to the European Union budget and on servicing the foreign debt. Some members of
the Council assessed that a significant zloty depreciation may limit the foreign investors willingness
to finance the borrowing needs of the state budget. Additionally, some Council members pointed
out that further depreciation of the exchange rate may cause long-term investors, holding debt
instruments issued by the Polish government, to hedge against the foreign exchange risk by
making transactions in the forward market, which may strengthen the zloty depreciation as a result
of arbitrage between the spot and the forward market. Other Council members, however, pointed
to a relatively small share of foreign debt in the total debt of the general government sector and
the dominant share of domestic investors in financing the borrowing requirements of the state.
According to those Council members an increase in the borrowing needs of the governments of
the developed countries resulting from undertaken counter-crisis measures is a more important
factor than the zloty depreciation in limiting the possibility of external financing of the budget
deficit and public debt in Poland, as well as in other developing countries.
While addressing the situation in the external environment of the Polish economy, the
deepening recession in developed economies (the United States, the euro zone, Japan) and the
increasing slowdown in economic growth in developing countries was noted. It was argued that
the worsening outlook for economic growth in China may put the expected improvement in global
economic performance at risk. It was also indicated that some of the central banks had continued
to ease their monetary policy in the recent period. Some members of the Council pointed out,
however, to a change in monetary policy stance of the central banks of Central and Eastern
Europe, which was due to the recent depreciation of their currencies.
While discussing the outlook for domestic economic growth, it was pointed out that the
decrease in industrial output and orders in January 2009, as well as worsening indicators of
economic climate confirm that the activity in the Polish economy is deteriorating further. Moreover,
it was noted that reduced lending by banks, increase in the burden for economic agents due to
the previously incurred foreign-currency-denominated liabilities as well as increases in administered
prices limiting the purchasing power of households will be conducive to decreasing domestic
demand. The negative influence of a significant deterioration of economic outlook on corporate
investment was also noted. It was indicated that further decrease in demand for Polish exports,
which is connected with the deepening recession experienced by Poland’s major trade partners,
will contribute to a further deterioration of economic growth in Poland. The impact of the decrease
in foreign demand for Polish exports may be cushioned by the depreciation of the zloty exchange
rate. Some Council members assessed that the scale of the economic slowdown in Poland may be
larger than forecasted in the February NECMOD projection.
The meeting also addressed the influence of the NBP interest rates reductions on domestic
demand and on the situation in the banking sector as well as in the credit market. It was indicated
that interest rate cuts ease the burden of servicing zloty-denominated loans of economic agents,
which limits the risk of debts being unsettled by these agents, and, in consequence, acts towards
increasing the stability of the financial system. It was also emphasized that lowering the interest
rates leads to an increase in purchasing power of the these agents, which may contribute to an
increase in domestic demand. Some Council members pointed, however, to the uncertainty
surrounding the impact of lower interest rates on the domestic demand in the context of the credit
market distortions. They indicated that the NBP interest rate cuts made in November and
December 2008 – despite a significant drop in the 3M WIBOR rate – were accompanied by
a smaller decrease in interest on corporate loans, only a slight decrease in interest on housing loans
2009
198
Appendices
N a t i o n a l B a n k o f P o l a n d
and a small increase in interest on consumer loans. Those Council member argued that the
reductions of the NBP interest rates decrease the banks’ incomes from servicing the previously
granted loans, which – coupled with a relatively high interest rate on deposits – may induce banks
to increase margins on newly granted loans. According to some Council members, too low
competition in the Polish banking sector may be a factor limiting the influence of the reductions
of the NBP interest rates on the interest on loans.
Some members of the Council indicated that limited demand for loans from economic
agents related to negative outlook for economic growth may constitute a barrier to the credit
growth. They emphasized that the decrease in creditworthiness of economic agents related to the
drop in value of their assets and the increase in the burden due to the incurred foreign-currency-
-denominated loans may also be a factor limiting the credit growth.
The Council discussed the possibility of modifying the employed monetary policy instruments
in order to improve the liquidity situation in the banking sector and prevent extensive reduction of
banks’ lending, including the potential extension of maturity of repo transactions, lowering the
reserve requirement rate and reducing the deposit rate to a greater extent than other NBP interest
rates. The Council also debated on the issues connected with employing the instruments directly
influencing the zloty exchange rate in the context of developments in the foreign exchange
market.
While addressing the outlook for inflation, some Council members estimated that in the
nearest future CPI and core inflation will remain at elevated levels, which also is indicated by the
February NECMOD inflation projection. Those members argued that substantial rise in administered
price and current strong depreciation of the zloty exchange rate will be conducive to
increasing inflation. Other members pointed out that the February NECMOD inflation projection
points to an increase of the negative output gap leading to a considerable drop in the inflationary
pressure in the monetary policy transmission horizon. Those members also pointed to a decreasing
wage pressure in the Polish economy. According to those Council members, the risk of permanent
overshooting the inflation target due to the zloty depreciation is small in the conditions of
significantly weakening demand. Those members assessed that – despite a strong depreciation of
the zloty exchange rate – the core inflation in 2009 Q1 may be lower than forecasted in the
February inflation and GDP projection. Moreover, they pointed out that in February 2009 the
inflation expectations of households and bank analysts declined. At the meeting, the uncertainty
related to inflation developments in the nearest period resulting from accounting for the changes
in the consumption basket of households by GUS was also brought up.
The Council also discussed the prospects of fulfilling the Maastricht price stability criterion
by Poland. Some Council members indicated that due to a more rapid drop in current headline
inflation in most European Union countries than in the Polish economy, in the nearest future the
12-month moving average HICP inflation in Poland, taken into account when assessing the
compliance with the price stability criterion, may still exceed the reference value. Other Council
member pointed out, however, that according to the February inflation and GDP projection in the
NECMOD model it may be expected that the CPI inflation will decrease to a low level over the
monetary policy transmission horizon, and, thus, Poland will be complying with the price stability
criterion in the medium term.
While analyzing the influence of fiscal policy on the economy, some Council members
pointed out that the scale of reductions of public spending in 2009 announced by the government
is larger than assumed in the February inflation and GDP projection. Those members indicated that
the change in the way of financing some infrastructural expenditure, which shifts the expenses
incurred for this purpose by the central budget to other units of the general government sector,
may – should difficulties with acquiring sufficient funds on the market arise – lead to the
refrainment from a part of these expenditures. They also emphasized that a more severe economic
slowdown than the one currently expected by the government, and consequently lower-than-
-expected budget revenues, may lead to further curbing of budget expenditures. Those Council
members argued that a restrictive fiscal policy supports further monetary policy easing. Other
2009
Annual Report 2009
Appendices
199
Council members, however, pointed to the actions announced by the government aimed at
alleviating the effects of the crisis, including, inter alia, mortgage-loan-repayment aid for the
unemployed, which will limit the restrictiveness of the fiscal policy.
While considering the decision on interest rates, some Council members argued that the
quickly deteriorating economic situation in the world and in Poland, the drop in inflation below the
target over the projection horizon expected in the February inflation and GDP projection, and the
relatively high restrictiveness of fiscal policy are factors supporting additional considerable NBP
interest-rate cuts. Those members assessed that in the current conditions the influence of the
interest rate disparity on the zloty exchange rate, and, by the same token, the risk of further
depreciation of the zloty exchange rate, is limited. Other Council members argued that the risk of
further significant depreciation of the zloty exchange rate that may lead to a considerable
deterioration of economic activity in Poland, and the uncertainty about the magnitude of the
impact of interest-rate cuts on domestic demand justified the decision of keeping interest rates
unchanged at the current meeting. According to the majority of the Council members, given the
considerable depreciation of the zloty the scale of the reduction of the NBP interest rates at the
February Council meeting should be moderate.
Motions to lower the NBP interest rates by 25 and 50 basis points were put forward.
A motion to lower the NBP interest rates by 50 basis points did not pass. A motion to lower the
interest rates by 25 basis points was passed. The Council decided to lower the NBP interest rates
to the level: the reference rate to 4.00%, the lombard rate to 5.50%, the deposit rate to 2.50%
and the rediscount rate to 4.25%.
The Monetary Policy Council judged also that the situation on the foreign exchange market
may justify employing the instruments directly affecting the zloty exchange rate.
Minutes of the Monetary Policy Council decision-making meeting held on
25 March 2009
During the meeting the Monetary Policy Council discussed the outlook for inflation in the
context of the past, current and, primarily, anticipated economic situation.
The discussion at the meeting focused on the short-term interest rate developments in the
context of conducted open market operations, zloty exchange rate changes, outlook for inflation
and economic growth in Poland and situation in the banking sector.
The Council paid a lot of attention to the consequences of change introduced to conducting
open market operations by limiting the supply of NBP bills. This change resulted in higher liquidity
remaining in the banking sector and related reduction in short-term interest rates in the interbank
market significantly below the NBP reference rate. It was argued that limiting the supply of NBP
bills as compared to the demand is aimed at fostering activity of commercial banks in the interbank
market. In the opinion of some discussants, lack of possibility of investing all the banks’ liquid
assets in money bills should further result in this liquidity being used to increase lending. At the
same time, it was pointed out that limited supply of NBP bills translated into banks’ increased
interest in investing in Treasury bills.
Some members of the Council argued that changes introduced to conducting open market
operations, translating into short-term interest rates in the interbank market lowering below the
NBP reference rate should be taken into account in the Council’s decisions concerning both the
level of the NBP interest rates and the possible further changes in the monetary policy instruments
used. At the same time, they pointed out that increased liquidity in the interbank market might
impede exchange rate stabilization. Moreover, the Council decided that reduction of reserve
requirement rate and decrease of the deposit rate by more that other NBP interest rates were not
justified at the moment.
2009
200
Appendices
N a t i o n a l B a n k o f P o l a n d
The Council also discussed the possible change in interest rates on FX swaps used by the NBP
and extension of their maturity.
While addressing the exchange rate issues, it was pointed out that since the February
meeting of the Council, the previously observed depreciation of the zloty had been halted. Some
members of the Council emphasized that the role of interest rate disparity was temporarily limited,
and exchange rate developments continued to be largely affected by other, mainly global and
regional factors, which was indicated by similar changes in exchange rates of the currencies of
Central and Eastern Europe. Other members of the Council argued that foreign exchange market
is still marked by high volatility and that the Council should continue to take into account the risk
of further depreciation of the zloty. In this context the importance of macroeconomic situation in
other economies of the region and the impact of any negative developments in those countries on
the zloty exchange rate were emphasized. In the opinion of those Council members, a major factor
behind uncertainty concerning zloty exchange rate developments was prospects of Poland’s
accession to the euro area.
While discussing the exchange rate, it was stressed that the previously observed considerable
zloty depreciation was the main risk factor for price stability in the coming months. It was pointed
out that the weakening of the zloty, through a strong increase in fuel prices, contributed largely
to a rise in inflation in February as compared to January 2009. Yet, at the same time, some Council
members stressed that the impact of exchange rate fluctuations on inflation would probably be
short-lived, and translation of the depreciation into domestic prices might be limited amidst
economic slowdown. Other members of the Council argued that a rise in producer prices in
February which proved considerably higher than expected, might be largely connected with the
previously observed weakening of the zloty exchange rate. In the opinion of those Council
members, although rising producer prices did not automatically translate into consumer prices, in
the situation of weakening external demand, rising production costs might be compensated for by
price increases in the domestic market, thus contributing to higher inflation. Those members also
pointed out that any further weakening of the zloty might lead to the fading of the anti-
-inflationary effect connected with lower imported inflation.
It was emphasized that, apart from the previously observed considerable depreciation of the
zloty exchange rate, higher inflation was driven mainly by rising administered prices, including, in
particular, flat maintenance and energy prices. Some Council members argued that the coming
months might be expected to see those prices continue to growth at an increased rate which
would reduce a fall in inflation. It was also pointed out that food price developments resulting from
unfavourable occurrences in the regions being important suppliers of main agricultural products,
were a risk factor for inflation.
While addressing other factors affecting the outlook for inflation, some members of the
Council pointed out that deepening recession in the global economy putting a downward pressure
on inflation abroad and a relatively low level of prices of raw materials – below the level accounted
for in the NBP February projection – would curb inflation in Poland. They also argued that amidst
weakening external and domestic demand, falling demand for labour would cause faster that
accounted for in the February inflation projection decline in wage growth which would be
conducive to a reduction of growth in unit labour costs. Those Council members assessed that the
above mentioned factors connected with strong decline in the demand pressure in the economy
indicated faster decrease in inflation than accounted for in the projection, which is also suggested
by the results of short-term forecasts prepared by the NBP.
While assessing the outlook for economic growth abroad, attention was paid to deepening
recession in the United States and in the euro area as well as to further lowering of forecasts for
those economies and the related risk of global recession lasting longer than accounted for in the
February projection. It was emphasized that in response to the strong decline in economic activity
and risks to stability of the financial sector, major central banks lowered their interest rates to very
low levels and undertook actions aimed directly at increasing the supply of reserve money which
were intended to intensify lending and decrease long-term interest rates. Attention was also paid
2009
Annual Report 2009
Appendices
201
to the fact that no further interest rate cuts were implemented by central banks of Central and
Eastern Europe.
While discussing the domestic economic growth, it was pointed out that recession in
Poland’s main trading partners translated into decreasing exports and industrial output which was
corroborated by the data for the first months of 2009. It was argued that weakening demand in
the economy was leading to falling employment in the corporate sector, rising unemployment and
declining wage growth. At the same time it was emphasized that deteriorating situation in the
labour market was curbing consumer demand which was reflected by retail sales data. It was also
indicated that deteriorating financial situation of enterprises was hindering their investment
activity. According to some members of the Council, the above mentioned factors, namely reduced
external and domestic demand (both consumer and investment demand) would result in GDP
growth being considerably lower than accounted for in the February projection. Other Council
members emphasized that the risk of further zloty depreciation was also of considerable
importance for the outlook of economic growth, since through increase in the value of obligations
denominated in foreign currencies and the related rise in debt service costs it might also lead to
further deterioration in financial situation of households and enterprises leading to lower GDP.
While analyzing the situation in the banking sector, attention was paid to high liquidity
preference of banks and their striving to attract deposits of non-financial sector by offering still
high interest rates. It was pointed out that high costs of financing bank activity resulting from the
above were reflected in increased margins on newly granted credits. At the same time, however,
it was emphasized that in the first few months of 2009 reduction in interests rates on deposits and
loans, following a considerable lowering of the NBP interest rates, was observed. Some discussants
argued that NBP interest rate cuts should lead to further fall in interest rates on deposits thus
reducing the costs of banks’ financing and contributing to a reduction in interest rates on loans.
Yet, it was pointed out that considerable increase in banks’ margins was largely due to higher
credit risk and, consequently, no considerable reduction in margins should be expected.
Some members of the Council emphasized that even if NBP interest rates reductions were
not fully reflected in interest rates on newly granted loans in commercial banks, lower interest rates
decreased the costs of servicing already taken loans which was of considerable importance for the
financial condition of some households and enterprises. Other Council members pointed out that
the impact of further interest rate cuts on the development of bank lending was currently limited
since the volume of loans depended, to a major extent, on factors not directly linked to the NBP
interest rates (such as high liquidity preference and high credit risk assessment).
The Council discussed the prospects of Poland’s accession to the euro area and related
requirement to fulfil the convergence criteria, including, in particular, price stability criterion.
While considering the decision on interest rates, some members of the Council argued that
considerable decline in economic activity leading to significant reduction in demand, combined
with lower wage pressure, and consequently also inflationary pressure, justified further lowering
of the interest rates. The reduction of the NBP interest rates should – in their opinion – translate
into lower interest rates on deposits and loans in commercial banks contributing to intensified
lending and preventing excessive decline in economic activity. Other Council members argued,
however, that the decision on interest rates should take into account the lowering of the short-
-term interest rates in the interbank market significantly below the NBP reference rate driven by
changes introduced to the conducting of open market operations. They also pointed at the risk of
further zloty depreciation and at a decline of real interest rate.
A motion to lower the NBP interest rates by 25 basis points was put forward and passed.
The Council decided to lower the NBP interest rates to the level: the reference rate to 3.75%,
the lombard rate to 5.25%, the deposit rate to 2.25% and the rediscount rate to 4.00%.
2009
202
Appendices
N a t i o n a l B a n k o f P o l a n d
Minutes of the Monetary Policy Council decision-making meeting held on
29 April 2009
During the meeting the Monetary Policy Council discussed the outlook for inflation in the
context of the past, current and, primarily, anticipated economic situation.
The discussion at the meeting focused on the outlook for economic growth in Poland and
abroad, situation and outlook for public finance, inflation developments in Poland, zloty exchange
rate developments and credit market situation.
While discussing the domestic economic growth, it was noted that the decline in exports,
industrial output and retail sales in the first months of 2009 confirm a considerable slowdown in
the economic activity in Poland. Yet, some members of the Council pointed out that better than
expected macroeconomic data and a slight improvement in some business climate indicators in
March 2009 might be a sign of a low-level stabilization of the activity in the Polish economy. Other
members argued that a minor decline in industrial output and higher than expected rise in wages
in March 2009 might be linked to a different than in 2008 holiday calendar, and some business
climate indicators continue to indicate a further deterioration in the activity in the enterprise sector
and a decline in demand in the Polish economy.
While addressing the outlook for domestic economic growth it was pointed out that due to
a considerable – albeit not so high as in the majority of other countries of Central and Eastern
Europe – openness of the economy, the global economic situation and related changes in demand
for Polish exports are the factor of uncertainty to the economic situation in Poland. In this context,
attention was paid to the deepening recession in the euro area and activity in the United States
continuing at low level as well as to further downward revision of growth forecast for the global
economy. The forecasts of considerable decline in GDP in 2009 in the German economy and in
non-EU economies being Poland’s major trading partners were indicated. However, at the same
time, attention was also paid to a slight improvement in the situation in global financial markets
and some signs suggesting that an intensification of unfavourable developments in the global
economy had been halted.
Some members of the Council pointed out that improvement in exports might, in the later
part of the year, constitute a factor driving recovery of the Polish economy which would, however,
depend on zloty exchange rate developments. Other members of the Council assessed that
changes in foreign demand might be of higher importance for the outlook for Polish exports than
zloty exchange rate developments.
While analyzing the exchange rate developments, it was pointed out that the previously
observed depreciation of the zloty had been halted. Yet, at the same time it was indicated that
developments in exchange rates of currencies of emerging economies, including the zloty
exchange rate, currently depended largely on changes in risk aversion in the international financial
markets. Moreover, some members of the Council emphasized that postponement of the zloty
joining the ERM II might be conducive to its depreciation. They also pointed out that worse than
previously expected situation of the public finance sector might be another factor increasing the
risk of zloty depreciation.
While discussing the situation in the public finance sector it was pointed out that the sector’s
deficit in 2008 was considerably higher than the one assumed by the government in the December
2008 Convergence Program. In this context, reference was made to the factors which contributed
to considerably higher than anticipated deficit level. Some members of the Council emphasized
that amidst the strong slowdown of economic activity it was likely that the budget deficit would
exceed the level assumed for 2009 or budget expenditures would be cut. Some Council members
also pointed out that possible implementation of additional anti-crisis measures might contribute
to a rise in the budget deficit in the coming years. It was indicated that uncertainty about the fiscal
situation, both of the central government and other entities of the public finance sector, hindered
the assessment of its impact on the outlook for inflation in Poland.
2009
Annual Report 2009
Appendices
203
While addressing the prospects of compliance with the Maastricht fiscal criterion it was
assessed that as a result of strong deterioration in the economic situation in Poland, the deficit of
the public finance sector in relation to GDP might increase considerably in the years 2009 and
2010. In this context, it was pointed out that fulfilment of the Maastricht fiscal criterion in the
coming years might be impeded.
While discussing the current inflation developments, it was indicated that a rise in consumer
price index in March 2009 up to 3.6% i.e. above the upper limit for deviations from the NBP
inflation target set at the level of 3.5% had mostly been driven by a rise in food prices. It was also
pointed out that the growth in regulated prices, including, in particular, rises in the prices of energy
and prices related with maintenance of dwellings continued to be the factor boosting inflation. It
was stressed that a rise in inflation had been driven by the previously observed zloty exchange rate
depreciation and that exchange rate developments continued to be the main risk factor for price
stability. Some members of the Council assessed, at the same time, that – taking into account the
zloty appreciation observed since the middle of February 2009 – the impact of the previously
observed depreciation of the zloty exchange rate on inflation may be rather short-lived. Other
members of the Council argued that higher than expected rise in inflation in March 2009 indicated
that even amidst strong economic slowdown, exchange rate depreciation translates significantly
into a rise in consumer prices in Poland.
While addressing the outlook for inflation in Poland, some members of the Council assessed
that in the medium term inflation should decline to the inflation target which was also suggested
by the February inflation projection and short-term forecasts prepared by the NBP. This might be
favoured by declining domestic demand and falling labour demand translating into a gradual fall
in wage pressure and by the commodity prices continuing at relatively low levels. Those members
also argued that a fall in inflationary expectations of households should contribute to a decline in
inflation. Other members of the Council pointed, however, to the risk of inflation persisting at an
increased level in the case of shocks affecting food and energy commodity markets. Moreover,
some members of the Council indicated that considerable worsening in the situation of the public
finance sector might urge the government to increase budget income through rises of indirect
taxes, including excise tax, and local governments – to increase the prices of services depending
on their decisions, which would, in turn, contribute to higher inflation.
The Council also discussed the prospects of Poland’s compliance with the Maastricht price
stability criterion. Some Council members indicated that amidst inflation in some EU countries falling
to very low levels the reference value for price stability criterion in 2010 might run considerably
below the 12-month moving average HICP inflation in Poland. In the opinion of those members fast
disinflation in Poland that would enable to fulfil again the Maastricht criterion might then require
considerable tightening of the monetary policy. At the same time, some members of the Council
pointed out that the developments of HIPC inflation in Poland against the reference value for price
stability criterion in the coming years would largely depend upon changes in regulated prices.
While discussing the credit market situation, some members of the Council pointed out that
banks in Poland currently focused their lending activity on consumer loan market. Interest rates on
consumer loans slightly increased despite NBP interest rate cuts implemented since November
2008. Moreover, they argued that excessive rise in households’ burden resulting from servicing
consumer loans might – through rising value of irregular loans – lead to deterioration in banks’
capital adequacy ratios and, in consequence, result in limiting future lending. Other members of
the Council pointed out, however, that the rise in the value of consumer loans was lower than last
year, and the share of consumer loans in the total loans was relatively small.
Members of the Council also discussed strong reduction in corporate lending in 2009 Q1.
It was pointed out that banks’ tightening of their lending conditions, partly connected with
persisting uncertainty about future economic developments hindering the assessment of the credit
risk, constituted the factor limiting corporate lending. Some members of the Council assessed that
in order to intensify corporate lending further modifications of the monetary policy instruments
might be necessary.
2009
204
Appendices
N a t i o n a l B a n k o f P o l a n d
At the meeting, the Council also addressed the possibility of Poland obtaining the IMF
flexible credit line. It was emphasized that the flexible credit line is aimed at countries with strong
economic fundamentals which used to pursue a responsible macroeconomic policy in the past and
which are likely to continue such a policy in the future. It was pointed out that Poland’s access to
the IMF funds might favour the exchange rate stabilization and indirectly facilitate obtaining the
funds to finance the budget deficit and public debt in foreign markets as well as to reduce debt
service costs. The Council analysed also the impact of Poland’s access to the flexible credit line on
the outlook for inflation in Poland.
The meeting also focused on dilemmas connected with the interest rate policy in the longer
term. It was pointed out that recovery in the global economy would require considerable
tightening of macroeconomic policy in many countries, which might be difficult both due to the
scale of the implemented anti-crisis instruments and uncertainty about the sustainability of such
economic recovery. In this context, some members of the Council pointed out that lowering the
NBP interest rates currently to excessively low levels might later on require a relatively faster and
stronger tightening of the monetary policy in order to stabilize inflation at the level of the inflation
target. Moreover, it was pointed out that excessive interest rate cuts might – in the situation of
further deterioration of the economic climate or economic stagnation – limit the possibility of
lowering interest rates in the future in order to support economic growth in Poland.
Some members of the Council indicated that the real ex post interest rate (deflated with
current headline inflation) in Poland was lower than in the euro area. Besides, it was pointed out
that – according to the short-term forecasts prepared at the NBP – in April 2009 inflation might
exceed the current level of the NBP reference rate, and, as a result, the real interest rate would be
negative. Yet, it was also indicated that amidst the unfavourable economic climate and persisting
uncertainty about future economic developments, a fall in real interest rates to the negative levels
might have a limited impact on households’ propensity to save. In this context, attention was paid
to considerable decline in the monetary policy restrictiveness, which was driven – apart from
interest rate cuts – also by the previously observed significant weakening of the zloty exchange
rate.
Members of the Council agreed that uncertainty about the outlook for economic recovery
in Poland and abroad, the situation in the public finance sector and zloty exchange rate
developments and their impact on inflation justified keeping the NBP interest rates unchanged at
the current meeting. Moreover, some members of the Council indicated that also very low level of
real interest rates spoke in favour of leaving the NBP interest rates unchanged. The majority of
the Council members maintained the opinion that the probability of inflation running below
the inflation target in the medium term was higher than the probability of inflation running above
the target.
The Council kept the interest rates unchanged: the reference rate at 3.75%, the lombard
rate at 5.25%, the deposit rate at 2.25% and the rediscount rate at 4.00%.
Minutes of the Monetary Policy Council decision-making meeting held on
27 May 2009
During the meeting the Monetary Policy Council discussed the outlook for inflation in the
context of the past, current and, primarily, anticipated economic situation.
The discussion at the meeting focused on the situation in the credit market and in the
banking sector as well as on the outlook for economic growth and inflation in Poland and abroad.
The Council paid a lot of attention to the situation in the domestic credit market. It was
pointed to a strong decline in the growth of corporate and mortgage loans. On the other hand,
attention was paid to a still high growth in consumption loans. It was pointed out banks might
give preference to consumer loans market as the average volume of this type of loan is lower and
2009
Annual Report 2009
Appendices
205
the average maturity shorter, whereas interest rate significantly higher than in the case of other
loan categories. Yet, some members of the Council paid attention to the growing risk of the loan
portfolio deterioration related with granted consumption loans and, as a result, possible reduction
of lending also in this segment.
It was emphasized that reduction in lending has a negative impact on economic activity
in Poland. It was also pointed at the risk of unfavourable feedback between deteriorating situation
in the real economy and situation of the financial sector.
While discussing measures that could support lending growth, the lowering of the required
reserve rate was considered. It was emphasized that lowering of the reserve requirement was one
of the expectations stated by banks during the preparation of the Pact on Credit Action
Development in Poland. In the opinion of the Council, the reduction of the required reserve rate
should be conducive towards increasing banks’ lending. While analysing the scale of the reduction
in reserve requirement, it was pointed out that lowering of this rate should be implemented
gradually, and potential further adjustments should depend on the impact of this reduction on
bank lending and interest rate developments in the interbank market.
Some members of the Council argued that high credit risk assessment was a more important
reason for banks’ limiting their lending than liquidity situation. In this context it was assessed that
implementation of the guarantees and warranties of the Bank Gospodarstwa Krajowego
introduced under the governmental Stability and Development Plan would favour the growth of
corporate lending.
While discussing the outlook for bank lending in Poland, the capital position of the banking
sector was also addressed. It was pointed out that solvency ratio for the whole banking sector had
recently stabilized, yet the capital position of different banks was diverse. The risk of decline
in capital adequacy ratios may – in the case of some banks – reduce their lending.
It was also pointed out that amidst the low limits for interbank transactions – in their attempt
to acquire deposits from non-financial sector – banks had offered, for several months now,
relatively high interests rate on deposits, considerably exceeding interest rates on loans in the
interbank market. In the opinion of some members of the Council, banks undertake such measures
in order to change the structure of their balance sheets to improve the relation between the value
of granted loans and the value of acquired deposits. Those members also pointed out that
relatively high costs of financing of banks’ activity were coupled with falling yields on previously
granted loans whose interest rate was largely based on variable WIBOR 3M rate.
While analyzing the money market interest rate developments, it was pointed at the recent
rise in WIBOR 3M rate which occurred amidst NBP interest rates being kept unchanged. Attention
was also paid to the fact that WIBOR 3M rate was now considerably higher than the interest rate
on repo transactions with the same maturity. According to some members of the Council, decline
in banks’ income on granted loans being the result of falling interest rates in the interbank market
accompanied by high costs of acquiring deposits induces those banks to undertake measures
aimed at maintaining WIBOR 3M rate at a heightened level, while limiting their interbank
transactions.
While discussing the external environment of the Polish economy, it was pointed to the signs
of easing of downward trends in the global economy. At the same time, it was emphasised that
the uncertainty about the starting point and sustainability of a possible recovery in the world
economy remains high. In this context, attention was paid to the data suggesting stabilization of
economic activity in the United States, while, at the same time, it was pointed out that some
recently released data on American economy was worse than expected.
While analysing the outlook for economic growth in Poland’s major trading partners, it was
assessed that due to relatively lower flexibility of product and labour markets, the recession in
Western Europe might be longer than in the United States. It was emphasized that a strong drop
2009
206
Appendices
N a t i o n a l B a n k o f P o l a n d
in GDP growth in euro area economies in 2009 Q1 might suggest that decline in economic activity
in this region in 2009 – despite recent improvement in some economic indicators – would be
deeper than expected. Some members of the Council also indicated that good economic situation
in Western European economies in the past few years was largely driven by the boom in real estate
markets and high demand for investment goods in the world. Those members argued that amidst
current slump in real estate markets the recovery might take relatively long time both in the
countries where the real estate bubble had burst and in the countries which had not reported any
significant disequilibrium in these markets but whose exports were largely dependent upon high
demand in the global economy. At the same time, those members pointed out that persisting low
level of production capacity utilization in Western European economies might lead to a decline in
the inflow of foreign direct investment to the countries of Central and Eastern Europe, including
Poland, which might negatively affect productivity and economic growth in this region.
While analysing the situation in the Polish economy, it was indicated that the released data
suggested a possibility of GDP growth remaining positive in 2009 Q1. At the same time, it was
assessed that subsequent quarters would see a downward trend in GDP growth which was
suggested by macroeconomic data for April 2009 and economic indicators remaining at a low level
despite a certain improvement in recent period. Some members of the Council assessed that GDP
would probably grow in 2009, albeit the risk of its slight decline could not be excluded. Moreover,
other members of the Council assessed that recovery in the Polish economy might come later than
expected and the GDP growth might remain at a relatively low level for a longer period of time,
should the recession in Poland’s major trading partners prove long-lasting.
In the opinion of some members of the Council factors curbing the decline in GDP growth
in subsequent quarters might include – similarly to 2009 Q1 – consumption and net exports. It was
pointed out that consumption growth slowed down gradually due to still relatively high wage
growth, income tax cuts implemented in 2009 and continuation of relatively high growth in
consumption loans. On the other hand, it was emphasized that growing unemployment and
anticipated decline in wage growth as well as worse consumer sentiment – despite certain recent
improvement – as compared with the previous years constituted factors that might be conducive
to limiting future consumption demand. Moreover, some members of the Council pointed to the
risk of decline in real wages in the economy which might lead to further reduction in consumption.
While addressing investment in the Polish economy, it was pointed out that further decline
in private investment would be driven by unfavourable outlook for economic growth in Poland and
abroad amidst production capacity surplus connected with high level of investment in the previous
years. It was also emphasized that factors acting towards decline in investment expenditure would
in addition include limited possibility of financing private investment in Poland caused by falling
inflow of foreign direct investment, reduced bank lending and deteriorating financial condition of
enterprises. On the other hand, it was pointed out that investment decline in the Polish economy
might be curbed by investment projects co-financed with EU funds.
While analysing current inflation developments, it was indicated that in April 2009 inflation
exceeded expectations and remained above the upper limit for deviations from the inflation target.
At the same time, it was pointed out that the rise in inflation in that month was caused by rising
food prices, regulated prices and traded goods prices, which was driven by the previous zloty
exchange rate depreciation. Some members of the Council emphasized that developments of
consumer price index net of prices largely beyond the direct control of monetary policy signalled
that inflationary pressure in Poland had not eased considerably yet.
While discussing the outlook for inflation in Poland, some members of the Council pointed
out that short-term forecasts of the NBP suggested inflation might decline in the coming months
below the upper limit for deviations from the inflation target. Those members also pointed out that
the structure of inflation expectations had not deteriorated despite the rise in current inflation. In
the opinion of those members of the Council in the medium term decline in inflation should be
driven by the slowdown in economic growth and further widening of the negative output gap in
2009
Annual Report 2009
Appendices
207
Poland. Other members of the Council also pointed out that at the initial stage of recovery in the
Polish economy inflationary pressure should not increase considerably due to faster labour
productivity than wage growth and, consequently, favourable changes in unit labour costs.
Some members of the Council also argued that amidst persisting considerable negative
output gap inflation in Western European countries might run, for a longer time, at a low level,
which – through import prices – would be conducive to easing inflationary pressure in Poland. Yet,
some members of the Council pointed at the risk of growth in agricultural and energy commodity
prices in the case of revival of economic activity in the United States and China, likely to occur
earlier than in Europe. Those members argued that continuing relatively low growth in the Polish
economy connected with persisting recession observed in Poland’s major trading partners might
be then accompanied by inflationary pressure resulting from increase in commodity prices in the
global markets.
At the meeting, it was also pointed out that the rise in inflation in the medium term might
in addition be driven by a possible rise in indirect and local taxes as well as fees and prices regulated
by local governments, connected with considerable deterioration in the situation of the general
government sector. At the same time, some members of the Council pointed at high uncertainty
about future tax policy of central government and about taxes, fees and prices decided by local
authorities.
While discussing the impact of exchange rate on inflation, some members of the Council
assessed that exchange rate developments remained the main risk factor for price stability. Those
members also argued that – in the absence of current inflation growth translating into rising
inflationary expectations and assuming exchange rate stabilization in the future – the impact of
exchange rate depreciation on inflation might be expected to fade off gradually. Other members
of the Council pointed out, however, that the pass-through of the previous exchange rate
developments on inflation might be stronger than assessed earlier.
Moreover, some members of the Council argued that the risk of deterioration in the outlook
for growth in the Polish economy as a result of longer-than-expected slowdown in the economic
activity in the euro area and a fall in the inflow of direct investment might be conducive to zloty
exchange rate depreciation in the medium term. Those members also pointed out that the risk of
exchange rate depreciation might result from deteriorating situation in the general government
sector in Poland. Deteriorating fiscal situation increases uncertainty about the moment of zloty
entering the ERM II.
At the meeting the prospects of Poland meeting the Maastricht price stability criterion were
also addressed. It was indicated that 12-month moving average HICP inflation in Poland exceeded
in April 2009 by 0.7 percentage point the reference value for price stability criterion and that the
difference between those indicators increased considerably.
Members of the Council agreed that current inflation developments, uncertainty about the
prospects of economic recovery in Poland and abroad and uncertainty about the situation in the
public finance and its impact on inflation justified keeping the NBP interest rates unchanged at the
current meeting. Some members of the Council indicated also that also very low level of real
interest rates spoke in favour of leaving the NBP interest rates unchanged. The majority of the
Council members decided that a more comprehensive assessment of the medium-term outlook for
inflation would be possible after getting acquainted with the results of the June projection of
inflation and GDP. Moreover, the Council decided that strong contraction in lending justified
lowering the required reserve rate by 50 basis points at the current meeting.
A motion to lower the required reserve rate by 50 basis points was put forward and passed.
The Council lowered the required reserve rate from 3.5% to 3%, keeping, at the same time, the
interest rates unchanged: the reference rate at 3.75%, the lombard rate at 5.25%, the deposit rate
at 2.25% and the rediscount rate at 4.00%.
2009
208
Appendices
N a t i o n a l B a n k o f P o l a n d
Minutes of the Monetary Policy Council decision-making meeting held on
24 June 2009
During the meeting the Monetary Policy Council discussed the outlook for inflation in the
context of the past, current and, primarily, anticipated economic situation.
The discussion at the meeting focused on the outlook for economic growth abroad and in
Poland, fiscal policy, zloty exchange rate developments and the situation in the credit market and
the banking sector. The Council discussed the impact of those factors on future inflation in Poland
against the background of the June projection of inflation and GDP.
While discussing the domestic economic growth, it was pointed out that decline in industrial
output and very low growth of construction and assembly production in May 2009 confirmed the
subdued economic activity in Poland. Some members of the Council pointed out that many
macroeconomic indicators released recently, including the output data, were better than expected
and some economic activity indicators pointed currently at a possible improvement in the outlook
for growth in Poland. Other members of the Council argued, however, that worsening economic
indicators in retail trade might signal further shrinking of consumption demand, which is driven
i.a. by the decline in real aggregate wage in the enterprise sector. Those members also pointed out
that according to the NBP preliminary assessments investment in the Polish economy might have
strongly declined in 2009 Q2. Those members also emphasized that the June projection of the NBP
pointed at further considerable decline in GDP growth in the coming quarters. Moreover, some
members of the Council emphasized that the decline in economic activity in Poland might be
stronger than indicated by the projection.
While discussing the external environment of the Polish economy, the successive signs of
improvement in the outlook for world economic growth and stabilization of the situation in the
global financial markets were pointed at. Yet, some members of the Council assessed that
recession in the global economy might last longer that currently expected, and improvement of the
situation in the financial markets might only be temporary. Those members emphasized that
macroeconomic data did not univocally suggest that the downward trend in economic growth in
the United States had been reversed. In the opinion of those members, recovery of the American
economy would proceed gradually, which might delay the recovery of the euro zone and other
developed economies. Those members indicated that 2009 was expected to bring a further strong
decline in economic activity in the euro area and some forecasts pointed to the risk of GDP fall in
this region also in 2010.
While analyzing the situation in the public finance sector, it was pointed out that a low
growth rate of budget income in the first five months of 2009, including a considerable decline in
tax revenues, which, given the persistently high expenditure growth, had led to a rapid increase in
budget deficit. Some members of the Council pointed out that in order to limit the decline in tax
revenues in 2009, the government would strive to increase non-tax revenues, including dividends
from companies with State Treasury participation, which, given the restricted access to loans,
might be conducive to additional cuts in investment expenditure by those enterprises. At the same
time, those members assessed that – despite possible increase in the proceeds from dividends –
the decline in budget income in 2009 would probably exceed the government announced growth
in the planned deficit, which would suggest the need of cuts in some expenditure areas. Those
members emphasized that the cuts in budget expenditure already announced by the government
as well as possible further cuts would be conducive to a fall in domestic demand. The possible rise
in taxes in 2010 might also lead to curbing domestic demand. It was also pointed out that the
uncertainty about the scale of the actual expenditure cuts and the areas likely to be affected by
these cuts, including the uncertainty resulting from some expenses being shifted from the central
government budget to other units of the general government sector, makes it difficult to assess
the impact of the changes in fiscal policy on the outlook for domestic economic growth.
While assessing the impact on inflation of changes in the situation of the general
government sector and in the fiscal policy, the risk of a rise in inflation resulting from possible
2009
Annual Report 2009
Appendices
209
increases of regulated prices and indirect taxes in 2010 was indicated. Some members of the
Council assessed that the rise in excise and VAT rates might be conducive to the CPI remaining at
an increased level in 2010. Other members of the Council pointed out, however, that the possible
tax increases and the government announced cuts in budget expenditure would be conducive to
curbing domestic demand and, as a result, inflationary pressure. Those members also indicated
that the rise in the budget deficit results mainly from the deteriorating economic conditions rather
than from fiscal policy easing.
While analyzing the changes in current inflation it was pointed out that CPI inflation had
fallen to 3.6% in May 2009, remaining, however, above the upper limit for deviations from the
inflation target, set at 3.5%. It was emphasized that the inflation decline in May 2009 had mainly
been driven by the negative base effect related to a strong rise in gas and energy prices in the
corresponding period of the previous year. Some members of the Council indicated that the
growth rate of consumer prices in the first few months of 2009 exceeded the average from the
last eight years, which, by means of a base effect, might be conducive to a decline in the year-on-
-year inflation rate at the beginning of 2010. Those members also pointed out that in 2009
inflation was likely to remain at an increased level which would be driven i.a. by the positive base
effect connected with a sharp fall in fuel prices in the second half of 2008.
While discussing the current inflation, some members of the Council also pointed out that
inflation remaining above the upper limit for deviations from the inflation target was mainly
connected with the previously effected increases in regulated prices and rising unprocessed food
prices. Other members of the Council indicated that inflation was also driven – and would probably
continue to be driven – by the persistence of inflationary processes. Moreover, they assessed that
despite declining inflationary pressure some sectors of the economy continued to observe demand
pressure as suggested i.a. by rising prices of market services.
The meeting also focused on HICP inflation developments in Poland. Some members of the
Council pointed out that the difference between the 12-month moving average HICP inflation in
Poland and the reference value for the price stability criterion increased in May 2009 to
1.0 percentage points. Yet, other members of the Council emphasized that inflation in Poland was
higher than in Western European countries mainly due to considerable rises in regulated prices,
which were beyond the direct impact of monetary policy. The difference in inflation levels might
also be driven by the previously observed depreciation of the zloty exchange rate and a smaller
scale of economic slowdown in Poland.
While discussing the outlook for inflation in Poland, attention was paid to the forecasted
considerable decline in inflation in the projection horizon. Yet, some members of the Council
pointed out that the situation in commodity and food futures markets pointed at the risk of
a continuing upward trend in commodity and food prices, which might be conducive to rising
inflation in Poland. Moreover, the decline in inflation might be curbed in the longer term by
structural changes in the Polish economy boosting demand for market services. Those members
also pointed out that in line with the projection in the years 2010–2011 CPI inflation should run
below inflation net of food and energy prices which had not been observed since 2003.
Other members of the Council emphasized, however, that the June projection of the NBP
pointed at the considerable widening of the negative output gap leading to a strong decline
in inflationary pressure over the monetary policy transmission horizon. Moreover, some members
of the Council assessed that in the medium term inflation might run below the central path of the
projection due to the risk of economic growth abroad being lower than assumed in the projection.
They also pointed out that due to the relatively slow adjustment of employment in the first stage
of the economic slowdown, employment growth, and consequently also the growth of unit labour
costs, might in the longer term be lower than accounted for in the projection. Those members also
assessed that amidst low demand the impact of rising unit labour costs on inflation might be
relatively weak. Moreover, in the opinion of those members of the Council, the zloty exchange rate
is currently significantly weaker than the medium-term equilibrium rate which suggests that
it might be stronger than accounted for in the projection.
2009
210
Appendices
N a t i o n a l B a n k o f P o l a n d
While analyzing the developments in the exchange rate of the zloty, its relative stabilisation
in the past few months was emphasized. On the other hand, it was pointed out that in May and
June 2009 the zloty exchange rate had depreciated. It was stressed that at present zloty exchange
rate fluctuations were impacted mainly by regional factors, in particular the unfavourable
macroeconomic situation in some countries of Central and Eastern Europe. At the same time,
attention was paid to the uncertainty about the impact on the zloty exchange rate of the
worsening fiscal situation and the changing outlook for economic growth in Poland. On the other
hand, some members of the Council assessed that the risk of zloty depreciation had considerably
decreased as a result of improved sentiment in the global financial markets and was further
mitigated by the relatively strong fundamentals of the Polish economy.
While discussing the impact of zloty exchange rate fluctuations on the economy, it was
pointed out that the previously observed zloty exchange rate depreciation contributed to inflation
persisting at an increased level. Some members of the Council assessed, however, that amidst low
demand the impact of zloty depreciation on inflation would gradually decline. Those members
emphasized that the current level of the zloty exchange rate increased the competitiveness of
Polish products in foreign markets and in the domestic market, which is reflected in the improved
current account balance and curbs the decline in domestic production.
While discussing the level of interest rates in Poland and abroad, it was pointed out that in the
current situation the interest rate disparity between Poland and the euro area had a limited impact on
zloty exchange rate developments. Yet, some members of the Council indicated that in the case of
further decline in risk aversion in the international financial markets the currently observed disparity
might boost the inflow of short-term capital to Poland. Other members of the Council pointed out,
however, that this risk was mitigated by a still high level of risk premium prevalent in emerging
economies. In the opinion of those members of the Council, the currently observed disparity was
consistent with the higher natural interest rate and more favourable economic situation in Poland
than in the euro area. Moreover, those members of the Council pointed out that ex post real interest
rates (deflated with current headline inflation) in Poland were lower than in the euro area.
While analyzing the situation in the credit market, further strong decline in the growth of
lending to the private sector was indicated. Some members of the Council pointed at the growing
credit risk both with regard to corporate loans and household loans. Those members indicated that
a considerable increase in lending might take place only after banks’ concerns about the quality of
their credit portfolios have abated. Moreover, they pointed out that limited lending was also driven
by banks’ high liquidity preference connected with their focusing on the improvement of their
balance sheet structure through increasing the share of liquid assets. Other members of the
Council emphasized that the strengthening of banks’ capital base might support the increase in
lending activity. In this context they assessed that the possible dividend payment by PKO BP would
likely lead to a reduction in the supply of loans by this bank.
Moreover, those members pointed out that if other banks also decided to pay out dividends,
the financial stability risk might increase.
While considering the decision on interest rates, some members of the Council argued that
the considerable decline in inflation over the monetary policy transmission horizon anticipated in
the June projection, further economic slowdown in Poland, the risk of long-lasting low economic
activity abroad and the relatively tight fiscal policy stance, justified lowering the NBP interest rates
at the current meeting. Other Council members argued, however, that the low level of real interest
rates, current inflation remaining at a heightened level and the uncertainty about the outlook for
inflation in Poland amidst growing commodity prices in the world markets and the still high
volatility of the zloty exchange rate as well as risks connected with the future fiscal policy justified
keeping the interest rates unchanged at the current meeting.
A motion to lower the NBP interest rates by 25 basis points was put forward and passed.
The Council decided to lower the NBP interest rates to the level: the reference rate to 3.50%,
the lombard rate to 5.00%, the deposit rate to 2.00% and the rediscount rate to 3.75%.
2009
Annual Report 2009
Appendices
211
Minutes of the Monetary Policy Council decision-making meeting held on
29 July 2009
During the meeting the Monetary Policy Council discussed the outlook for inflation in the
context of the past, current and, primarily, anticipated economic situation.
The discussion at the meeting focused on the outlook for economic growth abroad and
in Poland, medium-term inflation outlook, fiscal policy and credit market conditions.
The Council devoted a lot of attention to the outlook for global economic growth, while at
the same time pointing out the considerable uncertainty surrounding the activity in the world
economy both in the near future and in the longer term. It was emphasised that in the light of
some data, including in particular those on the United States and China, recessionary tendencies
in the world economy might have been halted in 2009 Q2, which is to a large extent connected
with the fiscal and monetary stimulus programmes being implemented in many countries. Some
Council members assessed that those programmes may be conducive to a recovery of global
economic growth in 2010. They argued that accelerated economic growth in China may have an
effect of reviving the activity in other Asian economies and – through increasing trade, which
would also include raising those countries’ demand for imported investment goods – lead to an
economic recovery in the euro area and the United States. Other members of the Council,
however, believed that the incoming information was rather ambiguous and that on the basis of
data signalling a strong increase in savings accompanied with a drop in household consumption in
the United States and also a further deterioration in the euro-area labour market in 2009 Q2,
it was difficult to expect any marked rise in global economic activity in the near term. Moreover,
they argued that with the end of the stimulus programmes implemented in the United States and
many other countries the activity in these economies may slacken again, which may be connected
with government expenditures being trimmed to curb budget deficits and limited spending of
indebted households.
While addressing the long-term outlook for the world economic growth, some Council
members argued that the global financial crisis may negatively affect the potential GDP growth in
many countries. This may be driven by the steep decrease in world trade and international capital
flows, in particular foreign direct investment, the breakdown of a part of the financial sector and
the ensuing reduced access of economic agents to credit and also by the relatively persistent rise
in unemployment. In the opinion of those Council members, the high level of uncertainty as to the
impact of the financial crisis on economies in the longer term significantly hinders the assessment
of the future economic growth and inflationary pressure in the world and in Poland, especially with
the use of econometric models which are based on historical data.
While addressing the situation in the domestic economy, it was pointed out that some
positive signals regarding the economic activity appeared recently. It was assessed that the
deceleration of recessionary tendencies in Poland may be indicated by the slower decline of
industrial output, an improvement in some business confidence indicators and the fact that part of
the data for June proved better than expected. Some Council members assessed that the GDP
growth in 2009 Q2 may have been positive and slightly higher than expected in the June
projection, which raised the probability of above-zero GDP growth in the whole of 2009.
Other Council members, however, emphasised that in the light of the June NBP projection
the GDP growth would be lower than the potential output growth in the monetary policy
transmission horizon. Those members assessed that in the time to come recession abroad would
continue to negatively affect the activity in the Polish economy, in particular through the low
demand for Polish export products and a drop in foreign direct investment conducive to lowering
labour productivity. They emphasised that the rise in unemployment, declining growth of real
wages and the drop in the value of households’ assets observed till 2009 Q1 would be contributing
to further reduction in consumption demand in the coming quarters. They also argued that the
prospects for investment growth in the enterprise sector remained negative, among others, due to
the pessimistic – despite some improvement – sentiment of entrepreneurs, hindered access to
2009
212
Appendices
N a t i o n a l B a n k o f P o l a n d
credit and possible further tightening of banks’ credit policies and also deteriorating corporate
profits. In the assessment of some Council members, economic growth in Poland may run below
the central path of the June projection of the NBP, among others, due to the possibly lower
economic activity abroad than accounted for in the projection, weaker than projected investment
growth connected with the negative business sentiment and a stronger increase in unemployment
along with the ensuing drop in households’ disposable income. Those members also argued that
the recently observed appreciation of the zloty would be conducive to reducing net exports and,
consequently, to lowering GDP growth.
At the meeting the Council also discussed the fiscal policy and its impact on the outlook for
economic growth in Poland. It was pointed out that in the light of the draft amendment of the
Budget Act for the Year 2009 passed by the lower chamber of the Parliament the drop in tax
revenue in 2009 would be significantly deeper than the scale of the assumed increase in the central
budget deficit. In the opinion of some members of the Council, with a persisting structural deficit
of the general government, part of lost tax revenue would be compensated by ad hoc measures
aimed at increasing non-tax revenue or cutting or postponing budget expenditure. In the
assessment of those Council members, such measures would be conducive to a one-off reduction
of the central budget deficit in 2009, but at the same time to its increase in the following years.
This creates the risk for the public debt to breach the so-called prudential thresholds provided for
in the Public Finance Act and also the limit set forth in the Constitution, which would necessitate
a strong fiscal tightening and would have a procyclical effect of undercutting domestic demand
and slowing GDP growth. Moreover, in the assessment of those Council members, the shifting of
some central budget expenditures to other general government units, which was assumed in the
discussed bill, led to reducing the transparency of the public finance and increasing the uncertainty
as to the actual scale of fiscal imbalance in Poland. In this context it was emphasised that there
was a need of implementing structural reforms, including the public finance reform, in Poland
in the longer run, which would favour a permanent increase in economic growth.
While discussing current inflation it was pointed out that the CPI inflation in June declined
to the upper limit for deviations from the inflation target of the NBP (i.e. to 3.5%), which was
primarily the effect of a stronger than a year before seasonal drop in the food price growth and
slower growth of prices of energy carriers resulting mostly from the base effect. Some members
of the Council emphasised that June also saw a reduction in core inflation net of food and energy
prices, which in 2009 Q2 as a whole proved slightly lower than forecast in the June inflation
projection. Other Council members stressed that in the past few quarters core inflation remained
at an elevated level and did not fall significantly despite a strong deceleration of economic growth,
which pointed at the persistence of inflationary processes. In particular, the prices of some market
services have been rising over the recent months, which in the opinion of those Council members
might indicate a persisting demand pressure in some sectors of the economy. Moreover, those
Council members pointed out that – despite a decline in June – the CPI inflation in the whole of
2009 Q2 proved markedly higher than in the June projection. In this context it was pointed out
that the ex post real interest rates (deflated with current inflation) in Poland were close to zero.
While analysing the medium-term inflation outlook, some Council members assessed that
– in line with the June projection – inflation in the monetary policy transmission horizon would fall
below the inflation target, which would be driven with the negative output gap and easing wage
pressure. At the same time, some Council members assessed that inflation in the medium term
could be lower than envisaged by the central projection path due to lower growth of unit labour
costs, which could result from a deeper drop in wage growth than that accounted for in the
projection. Moreover, in the conditions of low demand the impact of ULC growth on inflation may
be limited. Another factor mentioned as potentially conducive to lower inflation in the time to
come was the significant appreciation of zloty exchange rate observed over the past few months.
Other Council members assessed that inflation in the coming quarters may be running above
the central projection path, among others, due to the risk of higher commodity and food prices
than in the projection and the continuing high demand for some services resulting from the
structural changes ongoing in the Polish economy and increasing the prices of those services.
2009
Annual Report 2009
Appendices
213
Those members also pointed out that in line with the June projection, in 2010–2011 CPI inflation
should be running below core inflation net of food and energy prices, which has not been
observed since 2003. They also argued that, due to the difficult revenue situation of the general
government sector, the coming period may bring further increases of administered prices, which
would postpone the decline in inflation. On the other hand, however, they emphasised that an
elevated inflation level in the time to come would mainly follow from the previously implemented
and possible further increases of administered prices and only to a small extent from the continuing
demand pressure.
The Council discussed the credit market situation and interest rate developments in Poland.
It was pointed out that, despite the NBP interest rate cuts, in June 2009 the interest charged on some
newly granted loans increased, which in combination with the concurrent decline in the interest paid
on some new deposits pointed to increased interest margins of banks. In the opinion of some
Council members, the imperfect pass-through of the reference rate to the interest rate charged on
new loans was an argument against further cuts of NBP rates. Other Council members argued that
the so far effected NBP interest rate cuts had, in the longer perspective, contributed to lowering the
interest on loans and that the reduction in lending along with increased interest margins were
related to the growing credit risk, particularly in the case of loans granted to corporates. The Council
also analysed the impact of the NBP’s interest rates on long-term interest rates.
While considering the decision on interest rates, the Council assessed that the uncertainty
about the outlook for inflation and economic growth in the world and in Poland justified keeping
the rates unchanged at the current meeting. Some members of the Council believed that in view
of the low level of real interest rates, the continuously elevated current inflation level and balanced
– in their assessment – probabilities of inflation running above or below the inflation target in the
medium term, the NBP interest rates should be kept unchanged also in the months to come. Other
Council members assessed that inflation would drop below the NBP inflation target in the medium
term, which combined with the risk of a stronger than expected decline in economic growth may
justify the continuation of monetary policy easing in the future. The prevailing view at the meeting
was that the probability of inflation running below the inflation target in the medium term was
higher than the probability of inflation running above the target.
The Council kept the interest rates unchanged: the reference rate at 3.50%, the lombard
rate at 5.00%, the deposit rate at 2.00% and the rediscount rate at 3.75%.
Minutes of the Monetary Policy Council decision-making meeting held on
26 August 2009
During the meeting the Monetary Policy Council discussed the outlook for inflation in the
context of the past, current and, primarily, anticipated economic situation.
The discussion at the meeting focused on the outlook for economic growth abroad and in
Poland, medium-term inflation outlook, zloty exchange rate developments and credit market
conditions.
While discussing the external environment of the Polish economy it was pointed out that the
data on the United States and the euro area, including the GDP data for 2009 Q2, indicate easing
of recessionary tendencies in those economies. In particular, it was emphasised that GDP in
quarterly terms grew in Germany and France, i.e. in countries being the most important markets
for Polish exports. It was pointed out that GDP growth might have been driven by growing demand
for exports of those countries reported by the Chinese economy, which was connected with the
fiscal stimulus programme supporting public sector investment in China. It was indicated that since
the July meeting of the Council, the majority of economic sentiment indicators had further
improved and GDP growth forecasts for 2010 in the United States and in the euro area had been
slightly revised upwards.
2009
214
Appendices
N a t i o n a l B a n k o f P o l a n d
At the same time, it was emphasised that the global economic activity had continued at
a low level and at present it was difficult to assess whether the easing of recessionary tendencies
would prove permanent and what would be the scale of a possible recovery. Considerable
uncertainty about the outlook for the global economy is primarily connected with the next year’s
finalising of stimulus programmes which are now significantly contributing to mitigating recessions
in major economies. The unfavourable situation in the labour market, strong rise in savings and
decline in consumption in the United States together with further deterioration in euro-area labour
market all indicate that the stimulus programmes may have only a limited bearing on reviving
private demand. Another important factor affecting global economic growth will be GDP growth
in China. The assessment of the growth outlook is additionally hindered by persisting problems
in the banking sector.
Some members of the Council argued that the above mentioned factors, after a temporary
recovery driven by direct effect of stimulus programmes, might bring about another decline in the
global economic growth. In particular, those members argued that the expected recovery in the
euro area might not prove long-lived. In this context, they pointed out that despite certain
improvement in the financial markets conditions the majority of commercial banks operating in the
euro area continued to tighten their lending policies. Other Council members assessed that despite
considerable uncertainty persisting, the incoming information indicated an improvement in the
outlook for the global economic growth, which might suggest that the global recession would be
less severe than anticipated. Those members also pointed out that the growing role of Asian
countries in the global economy might contribute to the recovery in the euro area despite weak
domestic demand in this economy.
While analysing the inflationary processes abroad, it was pointed out that despite growing
commodity prices the decline in overall price level in the United States and in the euro area had
further deepened, amidst further decrease in positive core inflation indicators. Some members of
the Council argued that these trends indicated that possible global inflationary threats would be
probably of a longer-term nature and in the coming quarters major central banks should not be
expected to start tightening their monetary policy. In the opinion of those Council members, the
persisting pressure on price decline in the global economy would be, through import prices,
curbing inflation in Poland. Other members of the Council pointed out that due to an
unprecedented scale of stimulation measures introduced in the largest economies, the credibility
of the so-called exit strategy from the expansionary macroeconomic policy would be of key
importance for permanent anchoring of inflationary expectations and, as a result, for stabilising
inflation at a low level.
While addressing the situation in Poland, the members of the Council pointed out that
the data on the domestic economic climate were ambiguous. On the one hand, further decline
in Polish exports and persisting negative annual growth in industrial output (including the
output of intermediate and investment goods), deepening fall in employment in the corporate
sector, growing unemployment rate and further decline in bank lending all pointed to the
continuation of low activity in the Polish economy. On the other hand, the majority of economic
sentiment indicators rose, which may indicate an improvement in the economic situation in the
months to come.
While discussing the outlook for economic growth, it was stressed that it largely depended
on economic situation abroad and the related external demand for Polish products. It was pointed
out that factors supporting economic growth in Poland included the continuing, albeit lower than
in the previous quarters, consumption growth and a positive contribution of net exports,
connected with both the improvement in the price competitiveness of the Polish products in
relation to imports driven by the depreciation of the zloty in the second half of 2008 and at the
beginning of 2009, and also by the effect of stimulus packages introduced in the major world
economies. In this context it was argued that uncertainty related to GDP growth in Poland included
how permanent would be the easing of recessionary tendencies in Poland’s main trading partners
and exchange rate developments. Some Council members pointed out that the zloty appreciation
observed over the recent months, through lowering the price competitiveness of Polish products,
2009
Annual Report 2009
Appendices
215
may be conducive to reducing the contribution of net exports to GDP growth and to extending the
slowdown in the Polish economy. Those Council members argued that the same effect may be
brought by the deterioration of labour market situation, including the lowering of the real
aggregate wages, which may translate into curbing consumer demand. It was pointed out that
another factor that had a negative impact on GDP growth was the reduction in the supply of bank
loans.
At the meeting, the Council also discussed current and expected inflation developments.
It was indicated that the inflation rise in July 2009 to 3.6%, i.e. above the NBP’s inflation target of
2.5% and slightly above the upper limit for deviations from the target set at 3.5%, was primarily
driven by a strong surge in prices of tobacco resulting from changes in the excise tax and by
a further increase in fuel prices. Some Council members argued that despite the fact that inflation
could remain at a heightened level in the coming period – mainly due to the relatively high annual
growth of food and regulated prices – the available forecasts point to its decline in the second half
of 2010, which should be supported by the negative output gap connected with the still weak
external and domestic demand, continuing low wage pressure and the previous appreciation of
the zloty.
Other Council members emphasised that CPI inflation in Poland is characterised by
a relatively high persistence and subsequent projections were extending the horizon of inflation
returning to the target, which does not support the anchoring of inflation expectations. Those
members also pointed out that in line with the June projection, in 2010–2011 CPI inflation should
be running below core inflation net of food and energy prices, which has not been observed since
2003. Moreover, some members of the Council argued that the slowing potential output growth
combined with the improving outlook for economic growth may cause the negative output gap to
close earlier than anticipated. It was also emphasised that currently both inflation and GDP growth
in Poland were significantly higher than in most countries of the European Union.
The Council paid a lot of attention to the exchange rate developments, emphasising the
zloty appreciation in the recent period. Some Council members indicated that the improved
sentiment in the world financial markets, relatively favourable economic situation in Poland as
compared to other EU countries and the access to a flexible credit line of the International
Monetary Fund lowered the risk of strong zloty depreciation. At the same time, the persistently
heightened volatility of the zloty exchange rate was emphasised.
Some members of the Council indicated that one factor affecting the zloty exchange rate
could be the disparity of nominal interest rates between Poland and the euro area and the United
States favouring – especially amidst stabilising financial market situation – the inflow of capital,
which was reflected in the growing share of foreign investors in the market of Polish Treasury
securities. Other Council members, however, assessed that the perspectives of capital inflow to the
Central and Eastern European countries were to a greater extent influenced by the sentiment of
foreign investors towards the region and by the disparity in real terms, which was significantly
lower than that calculated in nominal terms.
While addressing the situation in the banking sector, on the one hand – the further
reduction of lending to the corporate sector was emphasised, and on the other – the still stable
increases in consumer loans to households. In this context, some Council members pointed out
that banks were increasing their profit margins, which meant that lowering of the costs of newly
granted loans was smaller than the scale of the implemented cuts in the NBP interest rates. In the
opinion of those Council members, the monetary policy should account for shifts in profit margins
resulting from the business cycle. Other members of the Council argued that in the current
situation the effectiveness of the credit channel was limited, which meant that possible further
interest rate cuts would have only minor effect for the supply of credit.
While analysing the situation in the banking sector, the Council also discussed the situation
of cooperative banks. It was emphasised that those banks have a large local significance, among
others, due to the preferential loans they offer for investments and development projects in
2009
216
Appendices
N a t i o n a l B a n k o f P o l a n d
agriculture as well as their contribution to financing local governments. It was pointed out that
cooperative banks were characterised with a surplus of deposits over extended loans and a lower
share of irregular loans in their credit portfolios than commercial banks, which gave cooperative
banks considerable potential for lending expansion. However, in the opinion of some Council
members, an increase in lending by cooperative banks called for the adoption of measures aimed
at raising regulatory capital of this sector.
While discussing interest rates, some members of the Council pointed out that the real ex
ante rates, i.e. rates deflated with expected inflation, remained positive, which combined with the
output gap remaining negative, could justify further NBP rate cuts. Other members of the Council,
however, argued that amidst large uncertainty accompanying inflation forecasts and, at the same
time, its high persistence, economic agents in their decision making would to a larger extent
consider the real ex post interest rates, i.e. rates deflated with current inflation, which were
currently close to zero and could be expected to run at a very low level also in the months to come.
While considering the decision on interest rates, the Council assessed that the uncertainty
about the outlook for inflation and economic growth in the world and in Poland justified keeping
the rates unchanged at the current meeting. Some Council members believed that the risk of
economic growth continuing at a low level in the longer run combined with the forecasted
significant inflation decline in 2010 might justify further easing of the monetary policy in the
future. Moreover, it was argued that the anticipated increase in the deficit of the public finance
sector would be primarily the effect of automatic stabilisers rather than anticyclical measures
introduced in the fiscal policy, which – in the opinion of those Council members – did not restrict
the possibility of further monetary policy easing. Other members of the Council pointed out that
the incoming data suggested that the recession in the world economy and the slowdown of
growth in Poland might prove milder than previously expected. Those members argued that signs
of economic recovery justified the assessment that the probabilities of inflation running above or
below the inflation target in the medium term were roughly equal, while the NBP’s interest rates
should be kept unchanged also in the coming months.
At the meeting, the prevailing view was that the probability of inflation running below
the inflation target in the medium term was higher than the probability of inflation running above
the target.
The Council kept the interest rates unchanged: the reference rate at 3.50%, the lombard
rate at 5.00%, the deposit rate at 2.00% and the rediscount rate at 3.75%.
Minutes of the Monetary Policy Council decision-making meeting held on
30 September 2009
During the meeting the Monetary Policy Council discussed the outlook for inflation in the
context of the past, current and, primarily, anticipated economic situation.
The discussion at the meeting focused on the outlook for economic growth abroad and
in Poland, the medium-term inflation outlook, fiscal policy and the situation in the banking sector.
The Council paid considerable attention to the external conditions affecting the Polish
economy. It was emphasised that the data on the United States, including the growth in industrial
output and retail sales, improved situation in the real estate market and a further rise in economic
sentiment indicators signal recovery in the US economy. While addressing the situation in the euro
area, it was pointed out that despite some improvement in economic sentiment indicators, data
on the real economy indicated that recovery in the euro area would likely materialise with a certain
time lag with respect to the US economy.
Some members of the Council argued that rising unemployment in the United States and
in the euro area remained a risk factor to the sustainability of the recovery in the world economy.
2009
Annual Report 2009
Appendices
217
In this context, attention was drawn to the unfavourable outlook for recovery in private
consumption amid deteriorating situation in the labour market in those economies and the
expected fading out of fiscal stimulus packages at the end of 2010 as well as the possibility of
central banks moving to the so-called exit strategy from expansionary monetary policy. Other
members of the Council pointed out that additional factors having a negative bearing on the
outlook for consumption in the United States included rising household savings and the private
sector’s limited access to mortgage loans due to the considerable decline in real estate prices in
the US that triggered the crisis in the banking sector. In turn, while discussing the situation in the
euro area, those members emphasised that rising imports of investment goods to China might
have largely contributed to the easing of recessionary tendencies in the euro area in 2009 Q2. In
the opinion of those Council members, a possible weakening of external demand following the
fading out of the stimulus package in the Chinese economy was a source of risk to the
sustainability of the recovery in the euro area.
While addressing the outlook for global economic growth, some members of the Council
pointed out that although private consumption in the United States and in the euro area might
prove weak, the rise in demand in major emerging economies, undergoing the process of real
convergence and recording significantly higher GDP growth than developed countries, would
translate into a sustainable recovery in the external environment of the Polish economy. Those
Council members also argued that the recovery in economic activity both in the United States and
the euro area would be accompanied by a gradual rise in labour productivity which might be
expected in view of the fact that the crisis affecting both economies had stemmed from problems
in the financial sector rather than from real economy developments. In the opinion of those
Council members, GDP growth of the major economies was likely to return to their potential
growth level relatively fast.
While discussing the outlook for inflation in the world economy, some members of the
Council emphasised that the difficult situation in the labour market affecting major developed
economies and a relatively low demand pressure, combined with the weakening of the upward
trend in oil prices in August 2009, would be curbing inflation in the coming quarters.
While discussing the situation in the Polish economy, it was pointed out that data on GDP
in 2009 Q2 proved slightly better than expected. At the same time it was emphasised that GDP
growth mainly resulted from the positive contribution of net exports due to a smaller decline of
exports than imports, amid a fall in domestic demand following from further consumption
deceleration and lower investment and inventories. While addressing the data for August 2009, it
was stressed, on the one hand, that the growth of industrial output and retail sales had fallen short
of expectations and, on the other hand, that economic sentiment indicators had further improved.
Some Council members pointed out that the growth of exports was still negative, while the
expected slight recovery in euro-area activity would probably fail to immediately translate into
a significant rise in the external demand for Polish products. It was argued that a possible further
appreciation of zloty exchange rate, through worsening the price competitiveness of domestic
goods, might be conducive to weakening the positive contribution of net exports to GDP growth
in the coming quarters. Those Council members also pointed to the persistent unfavourable
situation in the labour market as a factor contributing to lower consumption and, consequently,
weaker economic activity. In the opinion of those members, considering the still unfavourable
outlook for private investment growth and the risk of public investment cuts in the face of public
finance sector deterioration, there persisted considerable uncertainty as to the perspectives of
economic growth in the Polish economy.
Other Council members, however, argued that the expected recovery in the world economy
would be a factor supporting domestic GDP growth. Moreover, in the opinion of those members,
the scale of labour market deterioration would not be as strong as previously anticipated,
in particular due to the fact that the employment decline should be curbed by lower real wages.
They assessed – as a result – that the impact of the unfavourable labour market situation
on consumption would be rather limited.
2009
218
Appendices
N a t i o n a l B a n k o f P o l a n d
While analysing inflation developments, it was pointed out that the slight inflation increase
in August 2009 was primarily due to a weaker seasonal drop in food prices amid an unchanged
level of core inflation net of food and energy prices. Some Council members argued that in line
with the majority of available forecasts, in the next few months inflation may temporarily remain
at a heightened level, yet in 2010 inflation could be expected to fall even below the inflation
target. A significant drop in inflation in 2010 would be driven – in the opinion of those members
– by the delayed effects of labour market deterioration resulting both in reduced consumption
demand of households and slower growth of costs in enterprises. The same Council members
indicated that the inflation decrease would also be supported by the recent exchange rate
appreciation and the stabilisation of commodity prices in the world markets.
Other Council members emphasised that a gradual recovery of economic growth should
translate into higher demand, while the negative output gap might close up earlier than
anticipated. Moreover, the heightened level of inflation, including the continuing growth in the
prices of services, did not confirm – in the opinion of those Council members – a significant easing
of demand pressure, which could be expected considering the strong weakening of GDP growth.
While addressing forecasts, those members argued that inflation in 2009 Q2 and Q3 proved
markedly higher than expected in the June projection. In the opinion of those members of the
Council it could also be expected that the forecast inflation decrease below the target in 2010 may
prove short-lived. Those members argued that in line with the current short-term forecasts the
expected inflation decrease in 2010 to a large extent was to result from a strong deceleration of
food price growth, which is rather unlikely considering the average price growth in this group of
goods over the past few years. Moreover, while discussing the outlook for inflation, the Council
pointed to the risk of an increase of regulated prices and indirect taxes in 2010 which, on the one
hand, directly translate into a rise of the general price level and, on the other hand, bring about
a reduction in the purchasing power of households and an easing of the demand pressure curbing
inflation.
During the discussion on the public finance sector, some Council members pointed out that
the rise of the deficit and public debt in relation to GDP resulted, to a large extent, from a strong
slowdown in economic growth. It was argued that other EU countries also experienced
a significant increase in public finance imbalances whose scale was even greater than in Poland.
Other Council members, however, emphasised that of importance to foreign investors would be
the comparison of the ratios of the deficit and public debt to GDP in countries of Central and
Eastern Europe, including Poland, to the respective ratios in emerging countries characterised by
lower fiscal imbalances. In this context it was argued that the deteriorating fiscal stance could be
contributing to a weakening of the zloty exchange rate.
While addressing the planned increase of the public finance imbalance in 2010, some
discussants pointed out that a strong rise in the deficit of the public finance sector could justify
monetary policy tightening. At the same time, those members pointed out that even though a rise
in public spending amid low economic activity supports GDP growth, the dominant effect
triggered by a recovery could be the so-called crowding out effect where private sector demand is
crowded out by public expenditure. Other Council members argued that the anticipated increase
in the deficit of the public finance sector would primarily be the effect of automatic stabilisers
rather than anticyclical measures introduced in the fiscal policy, which did not restrict the possibility
of maintaining an accommodative monetary policy.
At the meeting, the Council also discussed issues related to the banking sector. Some
Council members argued that the tightening of banks’ credit policy towards the corporate sector
was very strong, which could lead to a considerable reduction of economic growth. In this context
the Council had a discussion on improving the access to bank loans for the corporate sector by
introducing new monetary policy instruments by the central bank, similarly as it is done by the
world’s major central banks. In the opinion of some Council members, introducing new
instruments, i.e. bill discount credit and the central bank’s purchase of bonds issued by commercial
banks, would allow banks to increase their lending. Those members argued that the launching of
new instruments could make it easier for enterprises to obtain both short-term loans, which would
2009
Annual Report 2009
Appendices
219
limit the risk of enterprises experiencing liquidity shortage, and long-term loans, which would limit
the scale of investment reductions. In the opinion of those Council members, the way
of implementation and the character of new instruments reduced the risk of excessive interference
of the central bank in banks’ credit risk management system.
Other members of the Council, however, emphasised that the reduction in bank lending was
a typical phenomenon accompanying economic slowdown and resulted not only from the
rationing of credit supply and the increased cost of credit but also from diminished demand for
credit on the part of enterprises. During the discussion it was also pointed out that the scale of
lending reduction in Poland was smaller than in other countries of Central and Eastern Europe.
While addressing the measures implemented by other central banks, those Council members
argued that Poland was in a better economic situation as compared to countries, which were
introducing unconventional monetary policy measures. At the same time, those members
emphasised that introducing the proposed instruments could in fact contribute to widening the
financing gap of banks (i.e. the difference between the collected deposits and granted loans).
Those members also argued that easier access to central bank funds might demotivate banks to
properly assess their credit risk. Moreover, in the opinion of those Council members, the central
bank should not increase the capital base of banks by issuing money, and investments in the
economy should be financed primarily from savings. In the opinion of those Council members,
introducing new instruments would pose the risk of excessive money creation in the economy.
While considering the decision on the interest rates, the Council assessed that the
information on economic developments released since the last MPC meeting justified keeping the
rates unchanged at the current meeting. Some members of the Council believed that available
data – including higher than expected GDP growth in 2009 Q2 and inflation remaining above the
target and above the June projection – as well as further improvement in the outlook for economic
activity justified the assessment that the probabilities of inflation running above and below the
inflation target in the medium term were roughly equal. Other Council members argued, however,
that the uncertainty about the scale and durability of economic recovery abroad and in Poland was
still high and a more comprehensive assessment of the macroeconomic situation would be possible
once the Council got acquainted with the October projection of inflation and GDP. At the meeting,
the prevailing view was that the probability of inflation running below the inflation target in the
medium term was higher than the probability of inflation running above the target. At the same
time, the majority of the Council members assessed that the probability of inflation running below
the inflation target in the medium term had decreased in recent months.
The Council kept the interest rates unchanged: the reference rate at 3.50%, the lombard
rate at 5.00%, the deposit rate at 2.00% and the rediscount rate at 3.75%.
Minutes of the Monetary Policy Council decision-making meeting held on
28 October 2009
During the meeting the Monetary Policy Council discussed the outlook for future inflation
developments in the context of the past, current and, primarily, anticipated economic situation.
The discussion at the meeting focused on the outlook for economic growth in the world and
in the Polish economy, on current inflationary processes in Poland and the situation in the credit
market. The Council discussed the influence of these factors on future inflation in Poland against
the background of the October projection of inflation and GDP.
While assessing the global economic situation, some members of the Council emphasised
that the improvement in economic climate in the euro-area economy was relatively small and the
forecast economic growth in the region remained considerably below potential. Those members
also pointed out that the improved economic climate in the United States and in China was to
a large extent rooted in the stimulus packages, and that the prospective gradual removal of such
measures kept up the uncertainty about the sustainability of global economic recovery.
2009
220
Appendices
N a t i o n a l B a n k o f P o l a n d
In particular, those members stressed the uncertainty surrounding private consumption recovery in
the United States amid the still deteriorating situation in the US labour market. Moreover, some
Council members assessed that the drop in private consumption in the United States connected,
among others, with households’ limited possibilities of taking out loans, including mortgage loans
incurred to finance consumption, will not be offset by a rise in household consumption in
emerging countries, even if the revived growth in these economies was sustained. In this context,
those members pointed to the risk of slow economic growth persisting worldwide.
Other Council members assessed that the recovery in emerging economies, including, in
particular, Asian countries, may be an important factor conducive to an economic revival all over
the world. Those members indicated that the accelerated growth in emerging economies will be
feeding through into the world economy mainly through the rise in those countries’ demand for
investment goods, exported, to a large extent, by the developed countries of Western Europe. In
the opinion of those Council members, the current recovery in Asia may be marking the beginning
of these economies’ return to the potential growth path which may run at a relatively high level
due to the ongoing process of real convergence in these economies.
While discussing the outlook for economic growth in Poland, some Council members
assessed that the Polish economy had already entered the phase of recovery, although some of
them emphasised that this recovery may prove relatively slow. At the same time it was pointed out
that the October projection forecast only a slight acceleration of growth in 2010. It was
emphasised that the relatively low GDP growth may be the result of a drop in real disposable
income of households connected with a rise in unemployment and a decline in real wages as well
as more difficult access to credit. Some Council members assessed that the latest macroeconomic
data, including those on exports, output and retail sales, did not indicate unambiguously the
beginning of a sustainable recovery in the Polish economy.
While discussing current inflation developments, it was pointed out that, despite the fact
that in September 2009 inflation had fallen to 3.4%, i.e. below the upper limit for deviations from
the inflation target (3.5%), it might nevertheless continue at a heightened level in the near future.
This high level of inflation would be driven primarily by the positive base effect connected with
a strong drop in fuel prices at the end of 2008. Some members of the Council pointed to the
continuation of the relatively high level of core inflation, including the persistently high growth of
prices of services. It was pointed out that Poland was one of the three EU countries with highest
inflation. Other Council members argued that the difference in the levels of inflation in Poland and
in other EU countries was connected with a smaller scale of economic activity weakening in Poland
and with the process of price convergence of the Polish economy to price levels recorded in
developed Western European economies.
While discussing the outlook for inflation in Poland, the Council addressed the projection
and the short-term inflation forecasts of the NBP which foresee inflation declining below the
inflation target of 2.5% in the middle of 2010. In the opinion of some members of the Council
this course of future inflation will follow from weaker consumption demand, persistently low wage
pressure and the appreciation of nominal zloty exchange rate so far. Those members also pointed
out that the October projection indicated a higher risk of inflation declining in 2010 below the
lower limit for deviations from the inflation target of the NBP (1.5%) than the June projection.
Other Council members indicated that the discrepancy between the short-term forecasts of
core inflation, food and energy prices and their forecasts in the October projection pointed to
a significant uncertainty as to the path of inflation in the coming quarters. In particular, some
Council members assessed that the growth of food prices in the nearest future may prove higher
than in the October projection. Those members additionally pointed to recently observed oil-price
rises in the world markets and to the uncertainty about natural gas prices in Poland. Moreover,
some Council members argued that the recovery in emerging economies, where economic growth
raises the demand for raw materials, may be conducive to a re-surge in the prices of agricultural
and energy commodities in the world markets, especially in a situation where no limits exist on
open investment positions in some forward commodity markets. In the opinion of those Council
2009
Annual Report 2009
Appendices
221
members, this may lead to higher inflation around the world and in Poland. At the meeting the
Council also discussed the risk of increases of administered prices in 2010, including the prices
decided by local authorities, resulting from the unfavourable situation of the public finance sector.
While addressing the outlook for inflation in 2011, some members of the Council pointed
out that, in line with the October projection the probabilities of inflation running below and above
the inflation target were similar towards the end of the projection horizon. Moreover, some
Council members argued that, following a drop to a low level foreseen in the middle of 2010,
inflation would be steadily increasing till the end of the projection horizon. Other Council
members, on the other hand, emphasised that for the most part of the projection horizon the
probability of inflation running below the target was higher than the probability of its running
above the target. Those members indicated that 2011 inflation being higher in the October
projection than in the June projection was partially a result of a positive base effect connected with
a deeper decline in food prices forecast for 2010. They also emphasised the issue of the optimal
forecast horizon in central banks pursuing inflation targeting and stressed that the limited
projection horizon increased the uncertainty about the durability of inflation changes in the final
period of the forecast horizon.
While discussing the future exchange rate and its impact on inflation in Poland, it was
pointed out that the projection assumed a gradual depreciation of the zloty exchange rate, which
was connected with a decreasing real interest rate disparity, the persistently high budget deficit
and growing public debt. Some Council members, however, pointed to the possibility of zloty
exchange rate appreciation, which could be supported by Poland’s relatively favourable economic
situation as compared to other EU countries and the continuously high surplus liquidity in the
global financial markets. Moreover, in the opinion of those Council members, should the recovery
in emerging markets come faster than in developed economies, emerging economies’ currencies,
including the zloty, could be expected to appreciate. Those members further emphasised that the
potential zloty appreciation would be conducive to lower economic growth and lower inflation in
the Polish economy than those accounted for in the October projection.
Other Council members, however, assessed that an appreciation of the zloty exchange rate
significantly exceeding the appreciation of the equilibrium exchange rate was unlikely in case the
growth of the Polish economy remained close to the October projection of GDP. Those members
pointed out that the zloty could depreciate due to a possible increase in the risk premium, which
in turn might be driven by an unfavourable situation of the public finance sector, a lack of
structural reforms in the Polish economy and Poland’s postponed adoption of the euro.
While analysing the situation in the credit market, some members of the Council assessed
that it was still deteriorating, which was, among others, indicated by a further decline in the
growth of credit to households and very low growth of credit to enterprises. Other members of
the Council, however, pointed to the fact that in September 2009 the value of granted loans in
month-on-month terms had risen for the first time in five months, both in the case of loans to
households and to enterprises.
Moreover, some Council members emphasised that the slow growth of loans to enterprises
was connected with their relatively good financial results and with their curbing their investment
activity, and any recovery in lending to the enterprise sector might come only once the outlook for
growth in the Polish economy significantly improved. Other Council members argued that reduced
lending was, on the one hand, connected with households being more cautious while incurring
liabilities amid slowing economic growth and rising unemployment, and, on the other hand, with
an increased credit risk perceived by banks as indicated, among others, by the tightening of loan
terms in the segment of consumer loans introduced in 2009 Q3 as well as planned for the future.
While discussing real interest rates in the context of the credit market situation, some
Council members indicated that real interest rates remaining at a relatively low level for too long
in a country undergoing real convergence may be increasing the risk of a credit boom in the
medium term. Those members pointed out that real interest rates were currently lower than the
2009
222
Appendices
N a t i o n a l B a n k o f P o l a n d
equilibrium interest rate for the Polish economy. At the same time, those members suggested that
the expected inflation decrease should translate into an increase in real interest rates, which in turn
should be conducive to a rise in household saving following a strong decline in 2009 Q1, as well
as to curbing the risk of excessive lending growth.
While considering the decision on interest rates, the Council concluded that the
information on the economic situation released since the last meeting warranted keeping the
interest rates unchanged at the current meeting. Some members of the Council were of the
opinion that in the conditions of continuing uncertainty about the recovery in the world
economy and about the outlook for economic growth in Poland, as well as in the light of the
October inflation projection predicting inflation to be below the NBP inflation target for the most
part of the projection horizon, it was justified to assess that in the medium term the probability
of inflation running below the inflation target was higher than the probability of inflation
overshooting the target. Other members of the Council argued that the recovery in the world
and Polish economies combined with the risk of commodity price increases in the world markets
and administered price rises in Poland, as well as the balanced probabilities of inflation running
above or below the inflation target in the final period of the October projection, warranted the
assessment that the probabilities of inflation in the medium term running below or above the
inflation target were balanced. The majority of Council members judged the probability of
inflation running below or above the inflation target to be balanced in the medium term. In the
assessment of some Council members balanced risks to future inflation should indicate that the
interest rates in the coming months would remain unchanged, which does not rule out the
possibility of their adjustment in case of developments that would significantly affect the outlook
for inflation and economic growth.
The Council kept the interest rates unchanged: the reference rate at 3.50%, the lombard
rate at 5.00%, the deposit rate at 2.00% and the rediscount rate at 3.75%.
Minutes of the Monetary Policy Council decision-making meeting held on
25 November 2009
During the meeting the Monetary Policy Council discussed the outlook for future inflation
developments in the context of the past, current and, primarily, anticipated economic situation.
The discussion at the meeting focused on the outlook for economic growth abroad and
in Poland, inflationary processes in Poland and the situation in the labour and credit markets.
While assessing the situation in developed economies, it was pointed out that following
several quarters of decline 2009 Q3 brought a rise in GDP in the United States and in the euro
area, including Germany, Italy and France, i.e. major markets for Polish exports. Yet, it was
emphasised that the recovery in those economies was, to a large extent, the effect of government
stimulus packages. It was assessed that the prospective discontinuation of these measures was
accompanied by a risk of decline in economic activity in those countries, mainly due to a possible
fall in private consumption growth. It was pointed out that economic growth in the United States
and in the euro area was also negatively affected by a decline in corporate loans and, in the longer
term also by the deteriorating situation of the public finance sector.
While analysing the situation in emerging economies, some members of the Council pointed
out that the recovery in those economies might not be sufficient to boost global GDP growth
considerably. Those members also noted that although private consumption in China might be
expected to accelerate in the coming period this would be unlikely to compensate for the impact
of a possible consumption decline in the United States on global economic growth due to a low
level of private consumption in China relative to global demand. An important factor curbing
growth in consumption expenditure in this country is the absence of a universal social security
system, as a result of which an important part of household income is saved.
2009
Annual Report 2009
Appendices
While discussing the outlook for domestic economic growth, it was assessed that the Polish
economy had already entered the phase of recovery, which was confirmed, among other things,
by increasing industrial output growth and very good financial results of enterprises in 2009 Q3.
It was also indicated that the recovery abroad (particularly in the euro area) contributed to growth
in Polish exports in 2009 Q3, as indicated by the data for the past three months. Some members
of the Council believed that the recovery would be relatively slow, and argued that in the coming
period economic growth in Poland might likely be curbed by a renewed deterioration in global
economic climate. In the opinion of those Council members, GDP growth in Poland would be
negatively affected also by such factors as: the deteriorating situation in the labour market,
including rising unemployment and the fall in real wages in the enterprise sector, the decline in
corporate loans and lending to households growing more slowly than in the last years, as well as
the difficult situation of the public finance sector.
In the opinion of other members of the Council, GDP growth in Poland dropping notably again
was very unlikely even in the event of a considerable deterioration in the global economy. They argued
that the scale of GDP growth decline in Poland due to the global financial crisis was considerably
smaller than in other European Union countries, and emphasised that despite the absence
of government stimulus packages of a scale comparable to those implemented abroad GDP growth
in Poland remained positive. It was assessed that the relatively high resilience of the Polish economy
to unfavourable external shocks – the turmoil in the global financial markets and the recession abroad
– was, among other things, the result of a low credit-to-GDP ratio and the economy’s lower degree
of openness as compared to other EU countries, as well as of the dynamic development of the service
sector (less dependent on global economic developments) observed in the past few years. It was also
emphasised that the relatively small scale of economic slowdown was largely due to a marked
decrease in the NBP interest rates as well as the depreciation of the zloty exchange rate.
While addressing the labour market situation, members of the Council pointed to persisting
unfavourable trends, including in particular the growth in registered unemployment and the
continuing negative annual employment growth, as well as the decline in real wages in the
enterprise sector in October 2009. Some members of the Council pointed out that in the light of
the October projection of the NBP, nominal wage growth in subsequent quarters would decline
further. Moreover, some members of the Council argued that due to lags in the adjustment of
employment to the pace of economic growth and a likely increase in labour supply, unemployment
could increase further in the coming period despite economic recovery. They assessed that rising
unemployment would be conducive to lowering the inflationary pressure through weaker
consumer demand and limited wage pressure. At the same time, some members of the Council
pointed out that rising unemployment might, due to the hysteresis effect, negatively affect the
potential GDP growth in the coming period.
While analysing the relationship between inflation and labour market developments, some
members of the Council emphasised that elevated inflation contributed to lowering real wages,
facilitating their adjustment to falling labour productivity growth. In the opinion of those Council
members, relatively high flexibility of real wages helped to reduce the scale of decline in Poland’s
GDP growth amid the global recession. They also pointed to the so-called labour hoarding,
consisting in incomplete adjustment of employment (i.e. reduced lay-offs) during an economic
slowdown. On the other hand, they emphasised that via indexation increased inflation contributed
to wage growth in the public finance sector as well as to growth in disability and old-age pension
benefits, which, in the short term, is conducive to deepening the deficit of the public finance
sector. In the opinion of those members of the Council, rising social benefits driven by indexation
amid a concurrent decline in wage growth in the economy reduced work attractiveness and might
negatively affect the economic activity of Poles. They also made reference to the data on wages
in the national economy which in the first three quarters of 2009 – unlike in the previous period –
showed higher annual growth than wages in the enterprise sector. According to those Council
members, this might indicate that the share of this sector in the national economy was declining
and, consequently, that the changes in wages in the enterprise sector – where wages are largely
dependent on cyclical conditions – might in the future affect wage developments in the economy
to a lesser extent than previously had been the case.
223
2009
224
Appendices
N a t i o n a l B a n k o f P o l a n d
While discussing inflation developments, it was pointed out that in October 2009 annual
CPI decreased to 3.1%, which was primarily the result of slower growth of food and energy prices;
at the same time, core inflation (net of food and energy prices) remained at 2.9%. Some Council
members emphasised that core inflation continuing at a heightened level was the effect, among
other things, of steady growth in the prices of services. Those members assessed that the gradual
increase in the demand for services observed over the recent years, which resulted in a growing
share of this spending category in the basket of consumer goods and services, would also continue
in the coming years, and so the prices of services would be exerting a growing impact on CPI
developments. They emphasised that core inflation had not been falling despite a clearly negative
output gap and pointed out that the current level of annual core inflation rate could still be to
some extent influenced by the high demand pressure observed in the previous period. Other
members of the Council stressed, however, that elevated CPI inflation was to a considerable
degree driven by unfavourable price shocks, including in particular the administered price increases
implemented in 2009. Some Council members also pointed to the reduced scale of decline in the
prices of goods strongly affected by globalisation recorded in the recent months, which was
partially connected with the earlier zloty exchange rate depreciation.
While discussing the outlook for inflation, it was pointed out that in the near term the
annual CPI would develop largely under the influence of statistical base effects: first, a positive one
– connected with a strong decline in fuel prices at the end of 2008, and then, a negative one –
connected with considerable increases in administered prices and food price rises at the beginning
of 2009 (provided the lack of equally strong administered price increases in 2010). Due to the
former effect inflation would rise temporarily in the nearest future, while the latter effect would
be conducive to its decrease next year. Some Council members indicated that in 2010 a drop in
CPI inflation below the NBP inflation target could be expected as the negative output gap would
likely persist. Another factor conducive to decreasing inflation could be the appreciation of the
zloty so far. Other Council members pointed out that the inflation decline might be curbed by
indirect tax and administered price increases. They also argued that inflation might prove higher
than currently expected in the event of unfavourable price shocks in the commodity or food
markets, or zloty exchange rate depreciation. In the opinion of those Council members in the
longer term the inflationary pressure would be largely determined by labour and credit market
situation.
While addressing the current situation in the domestic credit market, its further deterioration
was highlighted, including especially the negative annual growth of lending to enterprises
(adjusted for the impact of zloty exchange rate fluctuations) observed in October for the first time
since 2004, and the fact that the growth of lending to households was persistently slower than in
the preceding years. Some Council members argued that the reduction in the supply of credit to
enterprises contributed to curbing corporate investment, which in turn adversely affected GDP
growth. Other Council members, however, assessed that reduced lending was to a large extent
attributable to the limited demand for credit resulting from the economic slowdown. They
emphasised that in view of the data on financial results of enterprises in 2009 Q3, the liquidity of
this sector remained relatively high, allowing firms to finance their current operations to a large
extent with their own funds, and thus constrained their borrowing needs. They also pointed out
that lending to households was still growing.
The Council also analysed the development of the credit market in the longer-term
perspective. Some members of the Council emphasised that the credit-to-GDP ratio in Poland in
the period preceding the global financial crisis had been among the lowest in the EU. Other
Council members underlined that in the past few years this ratio had increased significantly. They
argued that, even though the rapid credit expansion in the years preceding the global crisis had
largely resulted from the convergence process, in the longer term sustaining such fast lending
growth could lead to growing credit market imbalances. They assessed that the current slowdown
in lending was to a large extent a cyclical phenomenon and that it would be conducive to a more
balanced lending growth. Those members argued that the recovery in economic growth would
give a new momentum to lending growth in connection with the convergence process and due to
demographic changes leading to a rising demand for mortgage loans. In the assessment of those
2009
Annual Report 2009
Appendices
Council members, the current situation in the credit market did not necessitate the introduction
of any additional instruments to support lending growth.
While discussing the policy mix abroad and in Poland, some Council members pointed out
that expansionary fiscal policies in many countries led to rising public debt levels which – amid
efforts to sustain price stability – could only be halted by strong fiscal tightening. At the same time,
however, low real interest rates around the world, driven by loose monetary policy, limited the
current costs of financing public debt, thus weakening the incentives to implement reforms aimed
at the improvement of the primary balance of the public finance sector. In this context, those
members emphasised the need for introducing measures that would curb the expansion of public
debt in Poland.
The Council assessed that the data on the economic situation in Poland and abroad released
since its last meeting warranted maintaining the interest rates unchanged at the current meeting.
The Council kept the interest rates unchanged: the reference rate at 3.50%, the lombard
rate at 5.00%, the deposit rate at 2.00% and the rediscount rate at 3.75%.
Minutes of the Monetary Policy Council decision-making meeting held on
23 December 2009
During the meeting the Monetary Policy Council discussed the outlook for future economic
growth and inflation in Poland, the monetary policy conducted by the Monetary Policy Council in
its second term of office, and determinants of monetary policy in subsequent years.
While discussing the outlook for global economic growth, some members of the Council
assessed the scale and sustainability of global economic revival as largely uncertain. Those
members emphasised that improved activity to-date in the largest developed economies had been,
to a large extent, the effect of fiscal stimulus packages. Those members also pointed out that, in
line with economic growth outlook for 2010, strong GDP growth could be expected in Asian and
Latin American economies as well as further improvement in economic activity in the United States
with relatively lower GDP growth in European economies.
As regards the situation in the Polish economy, it was emphasised that the in-coming data,
including data on export, industrial output and construction and assembly production, as well as
economic situation indices illustrating enterprises’ and households’ sentiment confirmed the
gradual recovery. However, some of the members pointed to risk factors underlying a prompt and
sustained revival of the Polish economy. In particular, those members pointed to reduced lending
to enterprises and a decline in loan growth to households, as well as to the persistence of an
unfavourable situation in the interbank market, reflected in elevated spreads between the NBP
reference rate and WIBOR rates. Those members also drew attention to the quick build-up of
public debt and argued that its high level could adversely affect economic growth in the medium
term.
While discussing current and future inflation the Council members pointed to the decrease
in core inflation net of food and energy prices from 2.9% in October to 2.8% in November 2009.
Some of the members were of the opinion, however, that core inflation stood at a relatively high
level, which, given a likely improvement in global economic situation that potentially could trigger
a rise in world prices for agricultural and energy commodities, posed a risk to maintaining inflation
at the target in the medium term. However, other members maintained that given the persistence
of the negative output gap in the Polish economy, a fall of inflation could be expected in
subsequent quarters. Moreover, some members of the Council stressed that the risk of increased
inflationary pressure in the Polish economy in the near future would be additionally contained by
the still unfavourable situation in the labour market, despite some signals of improvement in recent
months.
225
2009
226
Appendices
N a t i o n a l B a n k o f P o l a n d
While discussing the effects of the monetary policy conducted by the Council in its second
term of office, some members argued that the elevated CPI inflation in the years 2008–2009
indicated that in the earlier period the level of interest rates may not have fully accounted for future
inflation risk. According to those members their view was supported by the persistence of relatively
high core inflation in recent quarters, including the fast growth of market services prices. In their
opinion, the key factors conducive to lower inflationary pressure in 2008–2009 and thus
contributing to limiting inflation’s deviation from the inflation target were the appreciation of the
zloty in the period preceding the outbreak of the global financial crisis and the crisis-related decline
of prices of agricultural and energy commodities in global markets.
Other members pointed to the fact that elevated inflation in recent years was mainly
connected with factors beyond the direct control of domestic monetary policy. Those members
argued that the strong rise in prices of agricultural and energy commodities in global markets at
the end of 2007 and in the first half of 2008, which led to a rise in inflation in a number of
countries, including Poland, was, among other things, connected with a quick increase in demand
from emerging economies and legislative changes in the United States which excluded trade in
commodity futures from the supervision of public institutions. They also stressed that the crisis-
-driven zloty depreciation which significantly exceeded the depreciation of the equilibrium
exchange rate was conducive to the rise in inflation in Poland in 2009. Among the factors that had
significantly influenced prices in the Polish economy, including their faster growth in recent years,
the members indicated price liberalisation in certain domestic markets and increases of indirect
taxes and administered prices. Those members also stressed that in that period there had been
a very quick increase in loans in the Polish economy, which was connected with a strong inflow of
capital to emerging markets.
It was stressed that the rise in the prices of services, which contributed to increasing inflation
in Poland in 2008–2009, had probably been connected with changes in the structure of private
consumption and was characteristic of countries undergoing the process of convergence.
When discussing the monetary policy conducted in the years 2004–2009, the members
pointed out that one of the factors confirming the effectiveness of the policy was the fact that it
had anchored inflation expectations at a low level. Some of the members also argued that given
the lags between changes in NBP interest rates and their strongest impact on economic processes
a comprehensive assessment of the monetary policy conducted by the MPC in its second term of
office should account for inflation developments in 2010–2011. In this context the members of the
Council pointed out that most forecasts available show a strong fall of inflation in 2010. They also
argued that attempting to fully neutralise the impact of price shocks in global commodity markets
on inflation in Poland would have led to excessive GDP fluctuations in Poland, including a likely
GDP decrease after the outbreak of the global economic crisis.
While discussing the effects of the monetary policy conducted by the Council in its second
term of office against the background of other countries, some MPC members pointed to the fact
that in the years 2004–2009, in addition to shocks that impacted the world economy as a whole,
such as commodity shocks and the global economic crisis, the Polish economy also underwent
large changes connected with the accession to the European Union. Those members pointed to
the fact that despite these shocks, inflation’s average deviation from the target (0.3 percentage
point), the volatility of the output gap and of central bank interest rates in Poland in 2004–2009
were among the smallest in countries which pursued inflation targeting with a continuous inflation
target.
While discussing the monetary policy in the coming years, some members of the Council
argued that an excessive rise in lending, in particular a rise in the market for mortgage loans, could
pose a threat to price stability in the Polish economy over a longer time horizon. In addition, those
members stressed that if the credit boom risk increased significantly, monetary policy would have
to be tightened in Poland regardless of the relatively low CPI inflation. Since interest rate rises
themselves would not eliminate the credit boom risk they should be complemented with
appropriate supervisory measures.
2009
Annual Report 2009
Appendices
While referring to the decisions on interest rates in the coming months the Council
pointed out that in view of the low inflation pressure and the persisting threats to the sustainability
of economic recovery in Poland, NBP interest rates should be left at an unchanged level in the near
future. At the same time it was emphasised that in case of a significant economic revival in Poland,
accompanied by a significant increase in inflationary pressure, a change to the monetary policy
parameters could be required. Too strong and premature a monetary policy tightening in
a situation of over-liquidity in global financial markets could, however, result in an excessive
appreciation of the zloty. The situation of public finances will be an important conditioning factor
to monetary policy.
The Council concluded that leaving the interest rates unchanged was justified by the
information about the Polish and global economic situation that had been released since the
previous meeting.
The Council left the interest rates at an unchanged level: reference rate at 3.50%, lombard
rate at 5.00%, deposit rate at 2.00% and rediscount rate at 3.75%.
At the same time, the Council decided to introduce, starting on 1 January 2010, the discount
rate on bills of exchange accepted from commercial banks for discount at the NBP. The Council set
the discount rate at 4.00% on an annual basis.
227
Appendix 6
Selected information about the banking sector
In 2009, similarly as in the previous years, banks were the most important institutions in the
Polish financial sector. As at 31 December 2009, banking sector assets totalled PLN 1,060.7 billion
and were 2.1% higher as compared to the preceding year.
The global financial and economic crisis strongly affected the situation in the Polish banking
sector in 2009. The financial results (net profits) of the Polish banking sector were reduced by
36.3%, yet its enjoyed a better standing than banks in developed countries. This can be attested
by the fact that the majority of commercial banks controlled by non-residents achieved higher
yields on their assets than their parent companies.
The main reason for lower financial results of the banking sector in 2009 were higher costs
of credit risk and financing.
The increase in the costs of credit risk in the banking sector was a natural consequence of
economic slowdown and reflection of an easy credit policy of banks in earlier periods. Due to the
cyclical nature of credit risk it can be expected that the costs of credit risk will remain at an elevated
level until improvement of the financial situation of enterprises and the situation in the labour
market.
Disruptions in financial markets and the ensuing lower availability of financing from market
sources urged banks to compete intensely for stable financing sources, particularly the deposits of
households. This led to a rise in the share of the non-financial sector’s deposits in banks’ liabilities,
which negatively affects the financial stability of the sector.
The deterioration of the quality of the credit portfolio and financial results of banks, as well
as the persisting uncertainty as to the medium term outlook for economic growth, convinced
banks to tighten their credit policies. In 2009 banks restricted their credit policies in all the
segments of the market. This contributed to lowering the growth rate in all main categories of
loans to the non-financial sector. The deepest drop of lending growth rate was recorded in the
case of loans to enterprises. Slower growth in loans to non-financial entities was accompanied by
an increase in the value of Treasury securities, which do not generate the capital requirement for
credit risk.
The fact that banks allocated most of their profits earned in 2008 to increase own funds
amid a lower rate of lending pushed up the solvency ratio of the banking sector.
Table 45
Asset structure of the banking sector
Value (PLN billion) Change rate (in %) Structure (in %)
2008 2009 2008 = 100 2008 2009
Item
Cash and due from central bank 39.4
107.2 72.9 10.3 6.9
587.6 612.1 56.6 57.7
221.7 209.5 21.3 19.8
355.5 391.3 34.2 36.9
24.6 44.5 2.4 4.2
9.0 12.9 0.9 1.2
50.4 127.9 3.8 4.8
68.0
104.2
94.5
110.1
180.7
143.4
Due from financial sector
Due from non-financial sector, including:
– loans to enterprises
– loans to households
Due from
general government
Due from reverse
repo transactions
2009
228
Appendices
N a t i o n a l B a n k o f P o l a n d
2009
Annual Report 2009
Appendices
229
Source: NBP data.
Table 46
Liabilities structure of the banking sector
* Basic capital, supplementary fund, reserve funds, general risk fund, revaluation reserve, other supplementary funds.
Source: NBP data.
Table 47
Relationships with non-residents
Source: NBP data.
Table 48
Financial result of the banking sector
Source: NBP data.
180.9 211.4 17.4 19.9
18.3 41.0 1.8 3.9
147.2 149.5 14.2 14.1
25.3 24.3 2.4 2.3
65.0 32.3 6.3 3.0
1 039.1 1 060.7 100.0 100.0
116.8
223.3
101.5
96.0
49.7
102.1
Securities, of which:
– NBP money bills and bonds
– Treasury bills and bonds
Fixed assets
Other assets
Total assets of the banking sector
Value (PLN billion) Change rate (in %) Structure (in %)
2008 2009 2008 = 100 2008 2009
Item
Due to central bank 18.1 14.5 1.7 1.4
23.3 21.3
48.7 53.9
14.8 16.1
32.0 35.9
5.2 5.1
1.4 1.4
1.2 1.8
9.2 4.4
0.0 0.1
0.0 0.0
7.2 9.1
0.7 0.8
0.0 0.0
1.3 0.8
100.0 100.0
79.8
93.1
113.0
110.7
114.7
101.5
97.4
155.6
48.8
126.1
108.2
129.4
117.8
0.0
63.7
102.1
242.2 225.4
506.1 571.8
153.9 170.5
332.3 381.1
53.5 54.3
14.7 14.3
12.5 19.4
95.2 46.5
0.5 0.6
0.3 0.4
74.8 96.8
7.3 8.6
0.0 0.0
13.7 8.7
1 039.1 1 060.7
Due to financial sector
Due to non-financial sector,
including:
– deposits of enterprises
– deposits of households
Due to general government
Due to reverse repro transactions
Due to issue of own securities
Other liabilities
Specific provisions for off-balance sheet liabilities
General risk provision
Capital (funds)*
Subordinated debt
Profit/loss during approval procedures
Current year profit/loss
Total liabilities of the banking sector
Contribution (in %)
2008 2009
Item
Contribution of operations with non-residents
4.4
18.4
7.8
20.7
– in total assets of the banking sector
– in total liabilities of the banking sector
Value
(PLN billion)
Change rate
(in %)
2008 2009 2008 = 100
Item
Gross financial result 16.8 10.7 63.8
Net financial result 13.7 8.7 63.7
2009
230
Appendices
N a t i o n a l B a n k o f P o l a n d
Table 49
Profitability of the banking sector
Source: NBP data.
Table 50
Own funds and solvency ratio of the domestic banking sector
Source: NBP data.
Rate of return (in %)
2008 2009
Item
ROA – net 1.5 0.8
ROE – net 20.5 10.7
2008 2009
Annual change
(pp)
Growth rate
(in %, 2008 = 100)
Item
Solvency ratio (%) 11.2 13.3 2.1 n/a
Regulatory own funds (PLN billion) 77.6 89.7 n/a 115.7
2009
Annual Report 2009
Appendices
231
Appendix 7
List of open-to-public academic seminars and selected
publications of the NBP
In 2009, the NBP organised or co-organised 13 open-to-public academic seminars, which
presented the research papers by NBP staff as well as representatives of financial institutions and
academia. The seminars covered the following topics:
• Productivity differences across OECD countries, 1970–2000: the world technology frontier
revisited,
• Measuring the Effects of Monetary Policy: a Factor-Augmented Vector Autoregressive
Approach (FAVAR),
• Intertemporal approach to modelling the current account,
• Securities settlement systems in Poland and the European Union,
• Estimating the absolute inflation rate in the Polish economy,
• Co-integration analysis in studying the long-term structure of aggregate consumer
demand
• Interaction between foreign financial services and foreign direct investment in Transition
Economies: An empirical analysis with focus on the manufacturing sector,
• Review of the most important developments in the oil market with special consideration
of the impact of EUR/USD relationship on the level of oil prices,
• Inflow of direct foreign investment and productivity convergence in Central and Eastern
European countries from the perspective of sectoral data,
• Competition in the Polish banking market – empirical results,
• Impact of the credit breakdown on the Polish economy,
• Indebtedness of households in the new EU countries – its scale and currency composition,
• Securities settlement systems in Poland and the European Union – a seminar for
participants of the Polish financial market devoted to the common publication of the NBP,
the National Securities Depository (KDPW SA) and the Warsaw Stock Exchange.
In 2009, the following publications by NBP staff were included in ISI Master Journal List:
• Katarzyna Bień, Ingmar Nolte, Winfried Pohlmeier, An inflated multivariate integer count
hurdle model: an application to bid and ask quote dynamics, Journal of Applied
Econometrics (published in the JoAE website in 2009),
• Michał Hulej, Charalambos Tsangarides, Pierre Ewenczyk, Mahvash Saeed Qureshi,
Are AfricaΣs Currency Unions Good for Trade?, IMF Staff Papers, No 56, 2009,
• Juliusz Jabłecki, Mateusz Machaj, Regulated meltdown of 2008, Critical Review, vol. 21,
No 2–3, 2009,
2009
232
Appendices
N a t i o n a l B a n k o f P o l a n d
• Marcin Kolasa, Structural heterogeneity or asymmetric shocks? Poland and the euro area
through the lens of a two-country DSGE model, Economic Modelling, No 26(6), 2009.
In the series Materiały i Studia (NBP Working Papers) the following articles were published
in 2009:
• in Polish:
• Jakub Gorka, Koszty społeczne i prywatne instrumentow płatniczych,
• Marcin Pietrzak, Badania nad heterogenicznoEcia oczekiwań inflacyjnych. PodejEcie
ekonomii eksperymentalnej,
• Sylwester Kozak, Wprowadzenie euro – analiza kosztow działania oraz dochodow
z operacji wymiany walut w sektorze bankowym,
• Wiesław Gumuła, Adrian Gucwa, Zbigniew Opioła, Witold Nalepa, Rynek pracy w
Polsce. Wynagrodzenia, produktywnoEc pracy i migracje w Ewietle badań ankietowych
w listopadzie 2008 r.,
• Piotr Gol´dzinowski, Wpływ regulacji systemu bankowego na jego efektywnoEc,
• Krzysztof Jackowicz, Dariusz Filip, PowtarzalnoEc wynikow funduszy inwestycyjnych
w Polsce,
• Jacek ，aszek, Hanna Augustyniak, Marta Widłak, Euro a ryzyko babli na rynku
nieruchomoEci mieszkaniowych,
• Wiesław Gumuła, Adrian Gucwa, Zbigniew Opioła, Witold Nalepa, Rynek pracy w
Polsce. Wynagrodzenia, produktywnoEc pracy i migracje w Ewietle badań ankietowych
w maju 2009 r.;
• in English:
• Andrzej Toroj, Macroeconomic adjustment and heterogeneity in the euro area,
• Joanna B´za-Bojanowska, Ronald MacDonald, The Behavioural Zloty/Euro Equilibrium
Exchange Rate,
• Gabor P. Kiss, Tomasz J´drzejowicz, Jana Jirsakova, How to measure tax burden in an
internationally comparable way?
• Michał Gradzewicz, Endogenous growth mechanism as a source of medium term
fluctuations in the labor market. Application to the US economy,
• Michał Gradzewicz, Krzysztof Makarski, The macroeconomic effects of losing
autonomous monetary policy after the euro adoption in Poland,
• Konrad Szelag, Recent Reforms of the Deposit Insurance System in the United States:
Reasons, Results, and Recommendations for the European Union,
• Krzysztof Cichy, Human Capital and Technological Progress as the Determinants
of Economic Growth,
• Joanna Tyrowicz, When Eastern Labour Markets Enter Western Europe. CEECs Labour
Market Institutions upon Euro Zone Accession,
2009
Annual Report 2009
Appendices
233
• Katarzyna Budnik, Michał Greszta, Michał Hulej, Marcin Kolasa, Karol Murawski, Michał
Rot, Bartosz Rybaczyk, Magdalena Tarnicka, The new macroeconometric model of the
Polish economy,
• Vadym Lepetyuk, Christian A. Stoltenberg, Policy Announcements and Welfare,
• Michael Ehrmann, David Sondermann, The reception of public signals in financial
markets – what if central bank communication becomes stale?
2009
234
Appendices
N a t i o n a l B a n k o f P o l a n d
Appendix 8
Voting records of Monetary Policy Council members on motions
and resolutions in 2009
Date
Subject matter of motion or
resolution
MPC decision
Voting of MPC members:
For: Against:
27 January
2009
27 January
2009
27 January
2009
25 February
2009
25 February
2009
Resolution on the level of the
reference rate, lombard rate,
deposit rate and rediscount rate
of the National Bank of Poland
Motion to lower NBP interest rates
by 0.50 percentage point
Motion to lower NBP interest rates
by 0.25 percentage point
Motion to lower NBP interest rates
by 0.50 percentage point
Resolution on the level of the
reference rate, lombard rate,
deposit rate and rediscount rate
of the National Bank of Poland
The MPC cut the level
of all interest rates by
0.75 percentage point.
The motion to lower
the NBP interest rates
by 0.75 percentage
point was passed,
therefore the motion
to lower interest rates
by 0.50 percentage
point was not put
to voting.
The motion to lower
the NBP interest rates
by 0.75 percentage
point was passed,
therefore the motion
to lower interest rates
by 0.25 percentage
point was not put
to voting.
Motion did not receive
a majority vote.
The MPC cut the level
of all interest rates by
0.25 percentage point.
S. Skrzypek
J. Czekaj
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
S. Skrzypek
S. Nieckarz
M. Pietrewicz
S. Skrzypek
J. Czekaj
S. Nieckarz
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
D. Filar
H. Wasilewska-
-Trenkner
A. Wojtyna
J. Czekaj
D. Filar
M. Noga
S. Owsiak
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
D. Filar
M. Noga
A. Wojtyna
25 March
2009
Resolution on the level of the
reference rate, lombard rate,
deposit rate and rediscount rate
of the National Bank of Poland
The casting vote by
the MPC’ Chairman
S. Skrzypek decided
to lower the level of
interest rates by 0.25
percentage point.
S. Skrzypek
J. Czekaj
S. Nieckarz
S. Owsiak
M. Pietrewicz
D. Filar
M. Noga
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
2009
Annual Report 2009
Appendices
235
Date
Subject matter of motion or
resolution
MPC decision
Voting of MPC members:
For: Against:
22 April
2009
29 April
2009
29 April
2009
13 May
2009
Resolution on approving the Annual
Financial Report of the National Bank
of Poland prepared as of
31 December 2008
Resolution amending resolution
on setting the ceiling for liabilities
arising from loans and credits drawn
by the NBP at foreign banking
and financial institutions
Resolution on the stance of the
Monetary Policy Council on the IMF
Flexible Credit Line
Resolution on the evaluation
of the activities of the NBP
Management Board as regards
the implementation of the Monetary
Policy Guidelines for the Year 2008
S. Skrzypek
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
S. Skrzypek
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
S. Skrzypek
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
7 April
2009
Resolution to submit to the
Constitutional Tribunal an opinion
concerning the importance
of the National Depository
for Securities (KDPW S.A.)
and changes in the composition
of its shareholders
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
S. Skrzypek
S. Skrzypek
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna was absent from the
vote.
2009
236
Appendices
N a t i o n a l B a n k o f P o l a n d
Date
Subject matter of motion or
resolution
MPC decision
Voting of MPC members:
For: Against:
26 May
2009
27 May
2009
24 June
2009
29 July
2009
25 August
2009
Resolution on approving the Report
on the Operations of the National
Bank of Poland in the Year 2008
Resolution changing the resolution
on the rate of reserve requirement
of banks and the interest rate
on the reserve requirement
Resolution on the level of the
reference rate, lombard rate,
deposit rate and rediscount rate
of the National Bank of Poland
Motion to change the assessment
of the probability of achieving the
inflation target in the Information
from the meeting of the Monetary
Policy Council held on 28–29 July
2009
Resolution on the Monetary Policy
Council’s position (concerning the
Draft Ordinance of the Council
of Ministers on establishing the
National Coordination Committee
for the Euro, the Coordination
Council and Interinstitutional
Working Groups for Preparing
Euro Adoption by the
Republic of Poland)
The casting vote by
the MPC’ Chairman
S. Skrzypek decided
to lower the level of
interest rates by 0.25
percentage point.
The motion was not
passed (due to tie vote,
the Chairman’s casting
vote was decisive).
D. Filar
M. Noga
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
S. Skrzypek
J. Czekaj
S. Nieckarz
S. Owsiak
M. Pietrewicz
J. Czekaj was absent from the vote.
S. Skrzypek
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
S. Skrzypek
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
S. Skrzypek
J. Czekaj
S. Nieckarz
S. Owsiak
M. Pietrewicz
D. Filar
M. Noga
A. Sławiński
H. Wasilewska-
Trenkner
A. Wojtyna
S. Skrzypek
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
13 May
2009
Resolution on approving the Report
on Monetary Policy Implementation
in 2008
S. Skrzypek
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
2009
Annual Report 2009
Appendices
237
Date
Subject matter of motion or
resolution
MPC decision
Voting of MPC members:
For: Against:
29 September
2009
30 September
2009
28 October
2009
25 November
2009
Resolution on setting the ceiling
for liabilities arising from loans
and credits drawn by the NBP
at foreign banking and financial
institutions
Resolution on adopting the
Monetary Policy Guidelines
for the Year 2010
Motion to maintain the style of
communication so far used in the
press release from decision-making
meetings of the Monetary Policy
Council (variants of assessment
of probabilities for the path of
inflation in relation to the target)
Motion to amend Resolution
of the Monetary Policy Council
No 20/2008 of 23 December 2008
on the rules of conducting open
market operations to the effect that
the Resolution specifies the type
of securities eligible for purchase/
sale by the NBP in the secondary
market in the framework
of structural operations
Motion did not receive
a majority vote.
Motion did not receive
a majority vote.
S. Skrzypek
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
S. Skrzypek
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
A. Sławiński
A. Wojtyna
S. Skrzypek
S. Owsiak
M. Pietrewicz
D. Filar
M. Noga
A. Sławiński
A. Wojtyna
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
S. Skrzypek
J. Czekaj
S. Nieckarz
S. Owsiak
M. Pietrewicz
H. Wasilewska-
-Trenkner
M. Pietrewicz and H. Wasilewska-
-Trenkner did not participate
in the vote.
26 August
2009
Motion to change the assessment
of the probability of achieving the
inflation target in the Information
from the meeting of the Monetary
Policy Council held
on 25–26 August 2009
The motion was not
passed (due to tie vote,
the Chairman’s casting
vote was decisive).
S. Skrzypek
J. Czekaj
S. Nieckarz
S. Owsiak
M. Pietrewicz
D. Filar
M. Noga
A. Sławiński
H. Wasilewska-
Trenkner
A. Wojtyna
15 December
2009
Resolution on approving the
Financial Plan of the National Bank
of Poland for 2010
S. Skrzypek
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
2009
238
Appendices
N a t i o n a l B a n k o f P o l a n d
Date
Subject matter of motion or
resolution
MPC decision
Voting of MPC members:
For: Against:
15 December
2009
23 December
2009
Resolution amending the resolution
on accounting principles,
the structure of assets and liabilities
in the balance sheet and profit
and loss account of the National
Bank of Poland
Resolution on the level of the
reference rate, lombard rate, deposit
rate, rediscount rate and discount
rate of the National Bank of Poland
The Council decided
to introduce, beginning
1 January 2010, the
discount rate on bills
of exchange accepted
from commercial banks
for discount at the
NBP. The Council set
the discount rate at
4.00% on an annual
basis.
S. Skrzypek
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
S. Skrzypek
J. Czekaj
D. Filar
S. Nieckarz
M. Noga
S. Owsiak
M. Pietrewicz
A. Sławiński
H. Wasilewska-
-Trenkner
A. Wojtyna
Annual Report 2009 239
STATISTICAL ANNEX
2009
240
Statistical annex
N a t i o n a l B a n k o f P o l a n d
current
prices
the same
month
previous
year = 100
previous
month
= 100
constant prices
the same
month
previous
year = 100
previous
month
= 100
constant prices
previous
month
= 100
the same
month
previous
year = 100
previous
month
= 100
December
previous
year
= 100
1 2 3 4 6 8
1. Industrial output 2. Construction output 3. Consumer Price Index 4. Producer Price Index
9 10 11
65 023.9 94.4 96.9 9 543.6 102.0 150.1 103.3 99.9 103.3 102.7 99.6
62 409.7 84.7 93.7 3 638.5 107.4 37.9 102.8 100.5 100.5 103.6 102.3
65 264.4 85.4 102.4 4 254.1 101.9 117.2 103.3 100.9 101.3 105.7 102.6
75 180.0 98.1 115.6 4 887.5 101.2 115.1 103.6 100.7 102.0 105.5 100.0
69 333.0 87.8 93.1 5 456.0 100.5 112.0 104.0 100.7 102.7 104.8 99.1
67 588.4 94.8 98.2 5 863.3 100.3 107.7 103.6 100.5 103.2 103.7 99.7
72 174.2 95.7 106.2 6 811.1 100.6 116.3 103.5 100.2 103.4 104.1 100.8
69 437.0 95.4 97.2 7 172.4 110.7 105.5 103.6 100.1 103.5 102.8 98.5
66 059.3 99.8 95.7 7 108.1 111.0 99.2 103.7 99.6 103.1 102.2 99.6
75 335.0 98.7 115.0 7 541.6 105.7 106.1 103.4 100.0 103.1 101.6 99.8
77 012.0 98.8 101.9 8 130.2 102.7 107.6 103.1 100.1 103.3 102.0 100.4
74 455.1 109.8 96.7 6 948.1 109.9 85.5 103.3 100.3 103.5 101.9 99.6
71 090.4 107.4 94.6 9 788.6 103.1 140.9 103.5 100.0 103.5 102.1 99.8
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
million zloty % % million zloty % % % % % % %
the same
month
previous
year = 100
5 7
Period current
prices
million zloty million zloty million zloty million zloty million zloty million zloty %
accounts
receivable
and
associated
claims
total
current
assets
revenues
total total
accounts
payable
operating costs
% million zloty million zloty
22 23 24 25 26 27 28 29 31
Period
statutory
deductions
net
profit/loss
cost to
sales
ratio
net
margin
quick
liquidity
ratio
32 33 34
1 903 409.4 1 130 677.9 1 823 495.8 1 145 389.3 79 986.8 16 952.9 63 033.9 95.8 3.3 95.1 591 419.1 218 983.8 215 966.9
. . . . . . . . . . . . .
. . . . . . . . . . . . .
453 459.6 265 978.0 440 125.4 265 862.3 13 382.2 3 621.7 9 760.5 97.1 2.2 94.8 593 995.6 227 452.7 207 430.5
. . . . . . . . . . . . .
. . . . . . . . . . . . .
927 341.3 543 280.8 882 269.7 547 003.8 45 078.0 8 022.3 37 055.6 95.1 4.0 97.1 606 959.3 232 235.1 211 296.0
. . . . . . . . . . . . .
. . . . . . . . . . . . .
1 415 674.7 828 622.2 1 342 742.5 835 873.8 72 953.1 12 909.2 60 043.9 94.8 4.2 101.1 606 721.0 233 501.7 215 619.8
. . . . . . . . . . . . .
. . . . . . . . . . . . .
1 932 978.3 1 131 435.3 1 837 000.3 1 149 117.5 95 914.5 17 049.1 78 865.4 95.0 4.1 102.2 606 843.1 224 184.5 222 340.2
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
million zloty
12. Corporate financial performance
of which:
sales of
goods
& services
of which:
costs
of sales
pre-tax
profit/loss
%
30
million zloty
TABLE I
Basic economic data
2009
Annual Report 2009
Statistical annex
241
previous
month
= 100
7. Average
employment,
corporate
sector
total
9.
Unemployment
rate
102.9 99.9 5 517.0 5 353.0 1 473.8 9.5 3 428.01 254 083.8 278 674.3 -21 063.8
102.4 99.9 5 547.0 5 374.0 1 634.4 10.4 3 215.75 27 743.8 24 825.8 800.3
101.8 99.8 5 527.0 5 352.0 1 718.8 10.9 3 195.56 46 755.0 52 005.9 -6 367.0
101.3 99.9 5 498.0 5 325.0 1 758.8 11.1 3 332.65 65 726.9 76 946.7 -11 698.2
100.7 99.9 5 487.0 5 309.0 1 719.9 10.9 3 294.76 89 338.4 104 644.5 -14 662.2
100.3 99.8 5 472.0 5 292.0 1 683.4 10.7 3 193.90 111 123.4 127 480.1 -15 202.5
99.9 100.0 5 463.0 5 280.0 1 658.7 10.6 3 287.88 134 389.0 151 078.2 -16 912.7
99.6 99.9 5 453.0 5 273.0 1 676.1 10.7 3 361.90 160 027.6 175 064.7 -15 420.5
99.3 99.9 5 450.0 5 270.0 1 689.0 10.8 3 268.69 183 330.5 198 986.3 -14 706.2
99.2 100.0 5 450.0 5 267.0 1 715.9 10.9 3 283.18 202 582.0 223 925.7 -17 369.8
99.1 100.1 5 449.0 5 267.0 1 744.3 11.1 3 312.32 225 673.4 249 592.0 -16 017.1
99.2 100.1 5 449.0 5 265.0 1 811.1 11.4 3 403.92 250 937.0 275 279.1 -14 837.3
99.3 100.0 5 418.0 5 255.0 1 892.7 11.9 3 652.40 274 366.6 298 156.6 -5 233.7
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
% % thousands thousands thousands million zloty
expenditure
zloty million zloty million zloty
12 13 14 15 16 17 18
5. Construction Price Index 6. Number
of employed
corporate
sector
total
19 20 21
financial
surplus/deficit
and net foreign
lending/
borrowing
8. Number
of
unemployed
11. National Budget
revenue & expenditure
revenue
10. Average
monthly employee
earnings, gross,
corporate sector
%
the same
month
previous
year = 100
Period
2009
242
Statistical annex
N a t i o n a l B a n k o f P o l a n d
% % % % % % % million zloty million zloty
1 2 3 4 5 6 7 8 12
%
11
%
10
Period
demand time time
Total
Interest
on
reserve
requirement
Reserve
requirement ratio
on repo
operations
13 14
million zloty
Rediscount
rate
Deposit
rate
%
9
%
6.50 5.25 7.50 3.50 5.00 3.5 3.5 3.5 3.5 0.0 0.9** 21 089.0 21 089.0 .
5.75 4.50 6.75 2.75 4.25 3.5 3.5 3.5 3.5 0.0 0.9** 21 089.0 21 089.0 .
5.50 4.25 6.50 2.50 4.00 3.5 3.5 3.5 3.5 0.0 0.9** 21 793.4 21 793.4 .
5.25 4.00 6.25 2.25 3.75 3.5 3.5 3.5 3.5 0.0 0.9** 22 566.0 22 566.0 .
5.25 4.00 6.25 2.25 3.75 3.5 3.5 3.5 3.5 0.0 0.9** 22 850.9 22 850.9 .
5.25 4.00 6.25 2.25 3.75 3.5 3.5 3.5 3.5 0.0 0.9** 22 850.9 22 850.9 .
5.00 3.75 6.00 2.00 3.50 3.0 3.0 3.0 3.0 0.0 0.9** 19 439.2 19 439.2 .
5.00 3.75 6.00 2.00 3.50 3.0 3.0 3.0 3.0 0.0 0.9** 19 758.4 19 758.4 .
5.00 3.75 6.00 2.00 3.50 3.0 3.0 3.0 3.0 0.0 0.9** 19 699.6 19 699.6 .
5.00 3.75 6.00 2.00 3.50 3.0 3.0 3.0 3.0 0.0 0.9** 19 630.4 19 630.4 .
5.00 3.75 6.00 2.00 3.50 3.0 3.0 3.0 3.0 0.0 0.9** 19 630.4 19 630.4 .
5.00 3.75 6.00 2.00 3.50 3.0 3.0 3.0 3.0 0.0 0.9** 20 025.9 20 025.9 .
5.00 3.75 6.00 2.00 3.50 3.0 3.0 3.0 3.0 0.0 0.9** 20 148.4 20 148.4 .
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Reserve
requirement ratio
Lombard on zloty deposits
rate
Refinancing
rate
1. NBP interest rates
Minimum
yield on
open market
operations
(reverse repo
rate)*
Total required reserves held
of which:
declared
vault
cash
current
account
2. Reserve requirement
Reserve requirement
ratio on foreign currency
deposits (zloty equivalent)
demand
million zloty
Total
31
million zloty million zloty million zloty million zloty
28-week 39-week 49-week 52-week
42 43 44 45
million zloty
26-week
41
million zloty
25-week
40
million zloty
13-week
39
million zloty
10-week
38
million zloty
8-week
37
million zloty
6-week
36
million zloty
5-week
35
million zloty
3-week
34
million zloty
2-week
33
million zloty
1-week
32
of which for:
25 536.28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 061.54 . 3 066.45 . 3 137.10 . 16 271.19
12 441.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 0.00 . 2 584.75 . 9 856.47
13 887.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 0.00 . 0.00 . 13 887.50
32 787.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 21 242.09 . 0.00 . 11 545.03
14 368.67 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 0.00 866.35 0.00 . 13 502.32
16 770.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2 239.17 0.00 0.00 0.00 . 14 531.68
27 884.53 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 27 884.53
11 528.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2 896.38 8 632.01
15 124.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15 124.38
9 179.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9 179.22
5 545.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5 545.43
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Period
3. Treasury bill tenders
Demand declared by bidders (at face value)
TABLE II
Financial market – basic information
* 7-day operation
** Rediscount rate
2009
Annual Report 2009
Statistical annex
243
million zloty million zloty
Number of
tenders
during
month
Total
1-week 2-week 3-week 5-week 6-week 8-week 10-week 13-week 25-week 26-week 28-week 39-week 49-week 52-week
15 16 17
million zloty
18
million zloty
19
million zloty
20
million zloty
21
million zloty
22
million zloty
23
million zloty
24
million zloty
25
million zloty
26
million zloty million zloty million zloty million zloty
27 28 29 30
Period
3. Treasury bill tenders
of which:
4 9 900.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 500.00 . 1 500.00 . 1 800.00 . 5 100.00
4 2 900.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 0.00 . 600.00 . 2 300.00
4 6 600.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 0.00 . 0.00 . 6 600.00
5 10 400.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 5 400.00 . 0.00 . 5 000.00
4 6 500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 0.00 1 000.00 0.00 . 5 500.00
4 9 500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2 700.00 0.00 0.00 0.00 . 6 800.00
5 7 400.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 7 400.00
4 5 000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 000.00 4 000.00
5 5 800.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5 800.00
4 4 000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4 000.00
3 1 700.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 700.00
0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Face value of bills offered for sale
million zloty
Total
46
of which:
10 210.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 577.44 . 1 479.25 . 1 585.50 . 5 568.01
2 605.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 0.00 . 500.00 . 2 105.00
6 462.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 0.00 . 0.00 . 6 462.35
10 950.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 5 741.44 . 0.00 . 5 208.57
6 246.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 0.00 500.15 0.00 . 5 746.23
6 529.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 294.17 0.00 0.00 0.00 . 5 234.93
7 623.86 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 7 623.86
5 026.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 997.98 4 028.11
5 439.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5 439.30
3 457.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 457.74
1 240.53 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 240.53
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Okres
3. Treasury bill tenders
Face value of bills sold
million zloty million zloty million zloty million zloty
28-week 39-week 49-week 52-week
57 58 59 60
million zloty
26-week
56
million zloty
25-week
55
million zloty
13-week
54
million zloty
10-week
53
million zloty
8-week
52
million zloty
6-week
51
million zloty
5-week
50
million zloty
3-week
49
million zloty
2-week
48
million zloty
1-week
47
2009
244
Statistical annex
N a t i o n a l B a n k o f P o l a n d
TABLE II
Financial market – basic information
% million zloty
Total
61 76
Period
3. Treasury bill tenders
of which on:
6.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.14 . 6.20 . 5.79 . 6.18 47 863.44
4.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 0.00 . 5.15 . 4.72 46 628.93
5.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 0.00 . 0.00 . 5.00 47 223.92
4.63 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 4.38 . 0.00 . 4.91 51 716.73
4.81 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 0.00 4.30 0.00 . 4.86 56 193.26
4.95 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.46 0.00 0.00 0.00 . 5.07 56 747.04
4.73 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 4.73 57 452.37
4.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.28 4.37 61 299.34
4.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.22 60 535.76
4.42 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.42 55 753.84
4.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.26 50 863.64
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 47 180.93
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 41 940.16
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Yield on bills purchased weighted average Bills
outstanding
from tender
sales at month
end (purchase
prices)
%
1-week
62
% % % %
28-week 39-week 49-week 52-week
72 73 74 75
%
26-week
71
%
25-week
70
%
13-week
69
%
10-week
68
%
8-week
67
%
6-week
66
%
5-week
65
%
3-week
64
%
2-week
63
57 587.11 0.00 3 649.00 0.00 18 197.80 0.00 25 527.01 0.00 10 213.30 0.00 0.00
83 739.60 0.00 0.00 0.00 0.00 0.00 83 739.60 0.00 0.00 0.00 0.00
91 304.40 0.00 0.00 0.00 0.00 0.00 91 304.40 0.00 0.00 0.00 0.00
179 877.46 0.00 0.00 0.00 0.00 0.00 179 877.46 0.00 0.00 0.00 0.00
147 507.51 0.00 0.00 0.00 0.00 29 190.13 94 063.98 24 253.40 0.00 0.00 0.00
86 836.76 0.00 0.00 0.00 0.00 0.00 86 836.76 0.00 0.00 0.00 0.00
117 135.31 0.00 0.00 0.00 0.00 0.00 117 135.31 0.00 0.00 0.00 0.00
191 782.64 0.00 0.00 0.00 0.00 0.00 191 782.64 0.00 0.00 0.00 0.00
164 694.62 0.00 0.00 0.00 0.00 0.00 164 694.62 0.00 0.00 0.00 0.00
173 764.92 0.00 0.00 0.00 0.00 0.00 173 764.92 0.00 0.00 0.00 0.00
260 670.59 0.00 0.00 0.00 0.00 0.00 260 670.59 0.00 0.00 0.00 0.00
209 893.74 0.00 0.00 0.00 0.00 0.00 209 893.74 0.00 0.00 0.00 0.00
253 646.14 0.00 0.00 0.00 0.00 59 736.51 152 925.21 40 984.42 0.00 0.00 0.00
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
99
Period
4. Tenders for NBP money-market bills
million zloty million zloty
Total
1-day
89 90
Demand declared by bidders (at face value)
of which for:
million zloty
2-day
91
million zloty
3-day
92
million zloty
5-day 6-day 7-day 8-day 9-day 14-day 28-day
93
million zloty
94
million zloty
95
million zloty
96
million zloty
97
million zloty million zloty
98
2009
Annual Report 2009
Statistical annex
245
million zloty million zloty
Number
of
tenders
during
month
Total
1-week
77 78 79
Period
4. Tenders for NBP money-market bills
Face value of bills offered for sale
of which:
million zloty
2-week
80
million zloty
3-week
81
million zloty
5-week 6-week 7-week 8-week 9-week 14-week 28-week
82
million zloty
83
5 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4 27 000.00 0.00 0.00 0.00 0.00 0.00 27 000.00 0.00 0.00 0.00 0.00
4 60 500.00 0.00 0.00 0.00 0.00 0.00 60 500.00 0.00 0.00 0.00 0.00
5 82 200.00 0.00 0.00 0.00 0.00 19 500.00 46 200.00 16 500.00 0.00 0.00 0.00
4 84 500.00 0.00 0.00 0.00 0.00 0.00 84 500.00 0.00 0.00 0.00 0.00
4 131 500.00 0.00 0.00 0.00 0.00 0.00 131 500.00 0.00 0.00 0.00 0.00
5 195 500.00 0.00 0.00 0.00 0.00 0.00 195 500.00 0.00 0.00 0.00 0.00
4 164 500.00 0.00 0.00 0.00 0.00 0.00 164 500.00 0.00 0.00 0.00 0.00
4 172 000.00 0.00 0.00 0.00 0.00 0.00 172 000.00 0.00 0.00 0.00 0.00
5 261 500.00 0.00 0.00 0.00 0.00 0.00 261 500.00 0.00 0.00 0.00 0.00
4 226 500.00 0.00 0.00 0.00 0.00 0.00 226 500.00 0.00 0.00 0.00 0.00
5 290 000.00 0.00 0.00 0.00 0.00 59 000.00 174 000.00 57 000.00 0.00 0.00 0.00
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
million zloty
84
million zloty
85
million zloty
86
million zloty million zloty
87 88
57 587.11 0.00 3 649.00 0.00 18 197.80 0.00 25 527.01 0.00 10 213.30 0.00 0.00
83 739.60 0.00 0.00 0.00 0.00 0.00 83 739.60 0.00 0.00 0.00 0.00
58 884.61 0.00 0.00 0.00 0.00 0.00 58 884.61 0.00 0.00 0.00 0.00
60 500.00 0.00 0.00 0.00 0.00 0.00 60 500.00 0.00 0.00 0.00 0.00
82 200.00 0.00 0.00 0.00 0.00 19 500.00 46 200.00 16 500.00 0.00 0.00 0.00
77 666.86 0.00 0.00 0.00 0.00 0.00 77 666.86 0.00 0.00 0.00 0.00
117 135.31 0.00 0.00 0.00 0.00 0.00 117 135.31 0.00 0.00 0.00 0.00
186 362.65 0.00 0.00 0.00 0.00 0.00 186 362.65 0.00 0.00 0.00 0.00
160 055.47 0.00 0.00 0.00 0.00 0.00 160 055.47 0.00 0.00 0.00 0.00
166 794.53 0.00 0.00 0.00 0.00 0.00 166 794.53 0.00 0.00 0.00 0.00
255 557.65 0.00 0.00 0.00 0.00 0.00 255 557.65 0.00 0.00 0.00 0.00
207 072.07 0.00 0.00 0.00 0.00 0.00 207 072.07 0.00 0.00 0.00 0.00
252 909.63 0.00 0.00 0.00 0.00 59 000.00 152 925.21 40 984.42 0.00 0.00 0.00
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
110
Period
4. Tenders for NBP money-market bills
million zloty million zloty
Total
1-day
100 101
Face value of bills sold
of which:
million zloty
2-day
102
million zloty
3-day
103
million zloty
5-day 6-day 7-day 8-day 9-day 14-day 28-day
104
million zloty
105
million zloty
106
million zloty
107
million zloty
108
million zloty million zloty
109
2009
246
Statistical annex
N a t i o n a l B a n k o f P o l a n d
5.62 0.00 5.74 0.00 5.75 0.00 5.75 0.00 5.00 0.00 0.00 10 200.54
4.85 0.00 0.00 0.00 0.00 0.00 4.85 0.00 0.00 0.00 0.00 17 419.34
4.19 0.00 0.00 0.00 0.00 0.00 4.19 0.00 0.00 0.00 0.00 13 489.50
3.94 0.00 0.00 0.00 0.00 0.00 3.94 0.00 0.00 0.00 0.00 16 487.97
3.75 0.00 0.00 0.00 0.00 3.75 3.75 3.75 0.00 0.00 0.00 16 486.26
3.75 0.00 0.00 0.00 0.00 0.00 3.75 0.00 0.00 0.00 0.00 27 479.95
3.68 0.00 0.00 0.00 0.00 0.00 3.68 0.00 0.00 0.00 0.00 33 400.11
3.50 0.00 0.00 0.00 0.00 0.00 3.50 0.00 0.00 0.00 0.00 34 976.20
3.50 0.00 0.00 0.00 0.00 0.00 3.50 0.00 0.00 0.00 0.00 41 172.94
3.50 0.00 0.00 0.00 0.00 0.00 3.50 0.00 0.00 0.00 0.00 44 969.40
3.50 0.00 0.00 0.00 0.00 0.00 3.50 0.00 0.00 0.00 0.00 54 928.61
3.50 0.00 0.00 0.00 0.00 0.00 3.50 0.00 0.00 0.00 0.00 47 687.16
3.50 0.00 0.00 0.00 0.00 3.50 3.50 3.50 0.00 0.00 0.00 40 952.58
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
122
Period
4. Tenders for NBP money-market bills
% %
Total
1-day
111 112
Yield on bills purchased weighted average
of which on:
%
2-day
113
%
3-day
114
%
5-day 6-day 7-day 8-day 9-day 14-day 28-day
Bills
outstanding
from tender
sales at
month end
(purchase prices)
115
%
116
%
117
%
118
%
119
% % million zloty
120 121
TABLE II
Financial market – basic information
2009
Annual Report 2009
Statistical annex
247
million zloty million zloty million zloty
face value
of bids
submitted
by banks
123 124 125 126 127 128
Number
of
companies
at month
end
million zloty
129
Capitalisation
at month
end
130
P/E
ratio
at month
end
131 132 133 134 135
Warsaw
Stock
Exchange
Index (WIG)
at month end
WIG
monthly
average
mWIG40
at month
end
mWIG40
monthly
average
sWIG80
at month
end
million zloty %
136 137 138
sWIG80
monthly
average
Monthly
turnover
Turnover
ratio
0 0.00 0.00 0.00 0.00 374 267 359.3 8.4 1 789.7 1 779.7 1 511.3 1 561.7 6 852.8 7 028.9 18 231.7 2.2
0 0.00 0.00 0.00 0.00 376 247 573.8 7.7 1 594.9 1 716.0 1 365.6 1 455.8 6 629.9 6 753.9 18 576.9 2.2
0 0.00 0.00 0.00 0.00 372 217 390.6 8.3 1 372.5 1 445.5 1 243.6 1 306.3 6 091.4 6 274.6 21 407.1 65.4
0 0.00 0.00 0.00 0.00 373 236 082.6 10.5 1 511.9 1 499.7 1 381.7 1 318.8 6 971.8 6 489.2 23 902.2 64.4
0 0.00 0.00 0.00 0.00 373 279 479.5 13.0 1 798.5 1 708.5 1 685.0 1 552.3 8 599.5 7 967.9 30 353.0 79.1
0 0.00 0.00 0.00 0.00 375 277 712.1 24.1 1 802.4 1 836.2 1 742.4 1 731.3 9 031.8 8 911.0 26 223.8 62.8
0 0.00 0.00 0.00 0.00 376 285 640.4 25.1 1 862.4 1 927.6 1 769.5 1 783.4 9 320.0 9 280.5 26 180.0 58.7
0 0.00 0.00 0.00 0.00 375 330 494.9 29.5 2 137.6 1 938.5 2 042.3 1 844.3 10 388.6 9 686.6 29 080.4 57.7
0 0.00 0.00 0.00 0.00 374 352 741.5 40.1 2 212.7 2 148.0 2 337.4 2 200.5 11 583.6 11 026.7 32 256.3 60.7
0 0.00 0.00 0.00 0.00 375 347 385.6 46.4 2 192.4 2 180.5 2 259.0 2 230.8 11 298.4 11 248.4 31 644.5 56.0
0 0.00 0.00 0.00 0.00 380 353 220.5 47.9 2 274.7 2 276.3 2 236.9 2 238.8 11 016.1 11 143.6 32 655.8 55.7
0 0.00 0.00 0.00 0.00 377 362 773.3 49.2 2 352.7 2 341.0 2 284.7 2 271.7 11 019.0 11 155.3 32 906.2 56.7
0 0.00 0.00 0.00 0.00 380 421 178.5 37.0 2 388.7 2 370.6 2 346.1 2 340.9 11 090.9 11 070.9 28 204.5 2.2
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
face value
of securities
alloted
for sale
face value
of bids
accepted
value of
bids
accepted
million zloty
Number
of
tenders
Period
5. Outright sales of securities by NBP 6. Data on trading sessions of Warsaw Stock Exchange
2009
248
Statistical annex
N a t i o n a l B a n k o f P o l a n d
PLN/USD PLN/EUR
USD/EUR
NBP average exchange rates
PLN/USD PLN/EUR
USD/EUR
NBP average exchange rates
PLN/USD PLN/EUR
USD/EUR
NBP average exchange rates
PLN/USD PLN/EUR
USD/EUR
NBP average exchange rates
December 2008
Days
January 2009 February 2009 March 2009
3.0338 3.8432 1.2668 2.9618 4.1724 1.4087 3.4561 4.4392 1.2845 3.6758 4.6578 1.2672
3.0394 3.8340 1.2614 2.9910 4.1721 1.3949 3.4828 4.4366 1.2739 3.7674 4.7483 1.2604
3.0468 3.8457 1.2622 2.9910 4.1721 1.3949 3.5230 4.5147 1.2815 3.7563 4.7443 1.2630
3.0805 3.8824 1.2603 2.9910 4.1721 1.3949 3.6070 4.6747 1.2960 3.7906 4.7432 1.2513
3.0476 3.8881 1.2758 3.0088 4.1137 1.3672 3.6112 4.6455 1.2864 3.7358 4.6955 1.2569
3.0476 3.8881 1.2758 3.0214 4.0613 1.3442 3.5564 4.5634 1.2832 3.7436 4.7493 1.2686
3.0476 3.8881 1.2758 2.8844 3.9170 1.3580 3.5564 4.5634 1.2832 3.7436 4.7493 1.2686
3.0035 3.8686 1.2880 2.9561 4.0159 1.3585 3.5564 4.5634 1.2832 3.7436 4.7493 1.2686
3.0548 3.9323 1.2873 2.9551 4.0478 1.3698 3.5165 4.5475 1.2932 3.7458 4.7266 1.2618
3.0610 3.9589 1.2933 2.9551 4.0478 1.3698 3.4653 4.4774 1.2921 3.7273 4.7297 1.2689
3.0257 3.9703 1.3122 2.9551 4.0478 1.3698 3.4983 4.5318 1.2954 3.6342 4.6050 1.2671
2.9709 3.9689 1.3359 3.0183 4.0344 1.3366 3.5761 4.5980 1.2858 3.6105 4.6197 1.2795
2.9709 3.9689 1.3359 3.1162 4.1435 1.3297 3.5949 4.6393 1.2905 3.4721 4.4833 1.2912
2.9709 3.9689 1.3359 3.1296 4.1368 1.3218 3.5949 4.6393 1.2905 3.4721 4.4833 1.2912
2.9561 3.9804 1.3465 3.2110 4.2256 1.3160 3.5949 4.6393 1.2905 3.4721 4.4833 1.2912
2.9683 4.0489 1.3640 3.1353 4.1522 1.3243 3.7360 4.7687 1.2764 3.4625 4.4940 1.2979
2.8948 4.0834 1.4106 3.1353 4.1522 1.3243 3.8238 4.8324 1.2638 3.4373 4.4653 1.2991
2.8463 4.1740 1.4665 3.1353 4.1522 1.3243 3.8978 4.8999 1.2571 3.4774 4.5313 1.3031
2.9130 4.1132 1.4120 3.2473 4.3113 1.3277 3.6952 4.6801 1.2665 3.3657 4.5352 1.3475
2.9130 4.1132 1.4120 3.3381 4.3280 1.2965 3.7823 4.7715 1.2615 3.3942 4.6446 1.3684
2.9130 4.1132 1.4120 3.3468 4.3305 1.2939 3.7823 4.7715 1.2615 3.3942 4.6446 1.3684
2.9081 4.1037 1.4111 3.3024 4.3094 1.3049 3.7823 4.7715 1.2615 3.3942 4.6446 1.3684
2.9476 4.1176 1.3969 3.4380 4.3957 1.2786 3.6592 4.7085 1.2868 3.3533 4.5748 1.3643
2.9313 4.1025 1.3995 3.4380 4.3957 1.2786 3.6602 4.6780 1.2781 3.3330 4.5308 1.3594
2.9313 4.1025 1.3995 3.4380 4.3957 1.2786 3.6312 4.6590 1.2830 3.3784 4.5555 1.3484
2.9313 4.1025 1.3995 3.3911 4.3863 1.2935 3.6869 4.7068 1.2766 3.3605 4.5593 1.3567
2.9313 4.1025 1.3995 3.2549 4.3214 1.3277 3.6758 4.6578 1.2672 3.4054 4.5883 1.3474
2.9313 4.1025 1.3995 3.2992 4.3789 1.3273 3.6758 4.6578 1.2672 3.4054 4.5883 1.3474
2.9293 4.1848 1.4286 3.3653 4.3916 1.3050 3.4054 4.5883 1.3474
2.9072 4.1244 1.4187 3.4561 4.4392 1.2845 3.5779 4.7191 1.3190
2.9618 4.1724 1.4087 3.4561 4.4392 1.2845 3.5416 4.7013 1.3275
2.9715 4.0177 X 3.1717 4.2181 X 3.6314 4.6442 X 3.5412 4.6237 X
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Average
monthly
rate
1 2 3 4 5 6 7 8 9 10 11 12
TABLE III
PLN/USD and PLN/EUR daily exchange rates
2009
Annual Report 2009
Statistical annex
249
PLN/USD PLN/EUR
USD/EUR
NBP average exchange rates
PLN/USD PLN/EUR
USD/EUR
NBP average exchange rates
PLN/USD PLN/EUR
USD/EUR
NBP average exchange rates
PLN/USD PLN/EUR
USD/EUR
NBP average exchange rates
April 2009
Days
May 2009 June 2009 July 2009
3.5222 4.6462 1.3191 3.2859 4.3838 1.3341 3.1248 4.4447 1.4224 3.1375 4.4157 1.4074
3.3805 4.4895 1.3281 3.2859 4.3838 1.3341 3.1789 4.4846 1.4107 3.1013 4.3719 1.4097
3.3078 4.4523 1.3460 3.2859 4.3838 1.3341 3.1528 4.4872 1.4232 3.1236 4.3731 1.4000
3.3078 4.4523 1.3460 3.3049 4.3913 1.3287 3.1685 4.5048 1.4217 3.1236 4.3731 1.4000
3.3078 4.4523 1.3460 3.2548 4.3513 1.3369 3.1983 4.5365 1.4184 3.1236 4.3731 1.4000
3.2615 4.4135 1.3532 3.2985 4.3933 1.3319 3.1983 4.5365 1.4184 3.1483 4.3840 1.3925
3.3828 4.5101 1.3332 3.2632 4.3362 1.3288 3.1983 4.5365 1.4184 3.1298 4.3712 1.3966
3.4140 4.5039 1.3192 3.2419 4.3511 1.3421 3.2706 4.5353 1.3867 3.1852 4.4241 1.3890
3.3388 4.4408 1.3301 3.2419 4.3511 1.3421 3.2385 4.5118 1.3932 3.1222 4.3577 1.3957
3.3225 4.3635 1.3133 3.2419 4.3511 1.3421 3.1698 4.4729 1.4111 3.1425 4.3711 1.3910
3.3225 4.3635 1.3133 3.2145 4.3724 1.3602 3.1698 4.4729 1.4111 3.1425 4.3711 1.3910
3.3225 4.3635 1.3133 3.2250 4.3998 1.3643 3.1730 4.4615 1.4061 3.1425 4.3711 1.3910
3.3225 4.3635 1.3133 3.2078 4.3943 1.3699 3.1730 4.4615 1.4061 3.1600 4.4045 1.3938
3.3019 4.3856 1.3282 3.2898 4.4757 1.3605 3.1730 4.4615 1.4061 3.1158 4.3613 1.3997
3.1946 4.2351 1.3257 3.2979 4.4762 1.3573 3.2434 4.5009 1.3877 3.0557 4.2906 1.4041
3.2628 4.2965 1.3168 3.2979 4.4762 1.3573 3.2698 4.5373 1.3876 3.0527 4.2994 1.4084
3.2764 4.2848 1.3078 3.2979 4.4762 1.3573 3.2556 4.5153 1.3869 3.0630 4.3184 1.4099
3.2764 4.2848 1.3078 3.3281 4.4773 1.3453 3.2679 4.5462 1.3912 3.0630 4.3184 1.4099
3.2764 4.2848 1.3078 3.2141 4.3821 1.3634 3.2720 4.5444 1.3889 3.0630 4.3184 1.4099
3.3600 4.3592 1.2974 3.1907 4.3573 1.3656 3.2720 4.5444 1.3889 3.0236 4.3006 1.4223
3.4196 4.4289 1.2952 3.2049 4.4079 1.3754 3.2720 4.5444 1.3889 3.0023 4.2681 1.4216
3.4205 4.4212 1.2926 3.1543 4.4016 1.3954 3.2485 4.5037 1.3864 3.0091 4.2703 1.4191
3.3862 4.4147 1.3037 3.1543 4.4016 1.3954 3.2742 4.5518 1.3902 2.9830 4.2443 1.4228
3.3810 4.4763 1.3240 3.1543 4.4016 1.3954 3.2265 4.5476 1.4095 2.9663 4.2139 1.4206
3.3810 4.4763 1.3240 3.1578 4.4135 1.3977 3.2345 4.5166 1.3964 2.9663 4.2139 1.4206
3.3810 4.4763 1.3240 3.1948 4.4386 1.3893 3.2110 4.5073 1.4037 2.9663 4.2139 1.4206
3.4456 4.5380 1.3170 3.1714 4.4313 1.3973 3.2110 4.5073 1.4037 2.9230 4.1626 1.4241
3.5108 4.5678 1.3011 3.2418 4.4876 1.3843 3.2110 4.5073 1.4037 2.9237 4.1726 1.4272
3.3680 4.4498 1.3212 3.1812 4.4588 1.4016 3.2084 4.4908 1.3997 2.9632 4.1949 1.4157
3.2859 4.3838 1.3341 3.1812 4.4588 1.4016 3.1733 4.4696 1.4085 2.9737 4.1808 1.4059
3.1812 4.4588 1.4016 2.9525 4.1605 1.4091
3.3480 4.4193 X 3.2337 4.4105 X 3.2146 4.5081 X 3.0596 4.3053 X
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Average
monthly
rate
13 14 15 16 17 18 19 20 21 22 23 24
2009
250
Statistical annex
N a t i o n a l B a n k o f P o l a n d
PLN/USD PLN/EUR
USD/EUR
NBP average exchange rates
PLN/USD PLN/EUR
USD/EUR
NBP average exchange rates
PLN/USD PLN/EUR
USD/EUR
NBP average exchange rates
August 2009
Days
September 2009 October 2009
2.9525 4.1605 1.4091 2.8598 4.1025 1.4345 2.8960 4.2228 1.4581
2.9525 4.1605 1.4091 2.9401 4.1823 1.4225 2.9237 4.2540 1.4550
2.8843 4.1178 1.4277 2.8936 4.1387 1.4303 2.9237 4.2540 1.4550
2.8465 4.1035 1.4416 2.8872 4.1221 1.4277 2.9237 4.2540 1.4550
2.8547 4.1090 1.4394 2.8872 4.1221 1.4277 2.8851 4.2165 1.4615
2.8728 4.1363 1.4398 2.8872 4.1221 1.4277 2.8374 4.1780 1.4725
2.9021 4.1688 1.4365 2.8757 4.1249 1.4344 2.8477 4.1937 1.4727
2.9021 4.1688 1.4365 2.8403 4.0969 1.4424 2.8659 4.2351 1.4778
2.9021 4.1688 1.4365 2.8363 4.1095 1.4489 2.8960 4.2640 1.4724
2.8921 4.1053 1.4195 2.8651 4.1699 1.4554 2.8960 4.2640 1.4724
2.9165 4.1319 1.4167 2.8675 4.1858 1.4597 2.8960 4.2640 1.4724
2.9795 4.2046 1.4112 2.8675 4.1858 1.4597 2.8937 4.2602 1.4722
2.8912 4.1206 1.4252 2.8675 4.1858 1.4597 2.8534 4.2215 1.4795
2.8840 4.1190 1.4282 2.9183 4.2461 1.4550 2.8251 4.2090 1.4899
2.8840 4.1190 1.4282 2.8514 4.1640 1.4603 2.8075 4.1958 1.4945
2.8840 4.1190 1.4282 2.8239 4.1501 1.4696 2.8248 4.2078 1.4896
2.9703 4.1942 1.4120 2.7969 4.1204 1.4732 2.8248 4.2078 1.4896
2.9575 4.1755 1.4118 2.8228 4.1447 1.4683 2.8248 4.2078 1.4896
2.9645 4.1800 1.4100 2.8228 4.1447 1.4683 2.8113 4.1988 1.4935
2.9073 4.1395 1.4238 2.8228 4.1447 1.4683 2.7916 4.1759 1.4959
2.8848 4.1241 1.4296 2.8295 4.1498 1.4666 2.7772 4.1518 1.4950
2.8848 4.1241 1.4296 2.8094 4.1565 1.4795 2.8044 4.1956 1.4961
2.8848 4.1241 1.4296 2.8214 4.1742 1.4795 2.7816 4.1790 1.5024
2.8791 4.1163 1.4297 2.8309 4.1780 1.4759 2.7816 4.1790 1.5024
2.8714 4.0996 1.4277 2.8684 4.2114 1.4682 2.7816 4.1790 1.5024
2.8558 4.0883 1.4316 2.8684 4.2114 1.4682 2.7750 4.1721 1.5035
2.8975 4.1277 1.4246 2.8684 4.2114 1.4682 2.8230 4.2013 1.4882
2.8460 4.0854 1.4355 2.8896 4.2268 1.4628 2.8779 4.2540 1.4782
2.8460 4.0854 1.4355 2.8790 4.2003 1.4589 2.8847 4.2540 1.4747
2.8460 4.0854 1.4355 2.8852 4.2226 1.4635 2.8595 4.2430 1.4838
2.8675 4.0998 1.4297 2.8595 4.2430 1.4838
2.8956 4.1311 X 2.8595 4.1635 X 2.8469 4.2173 X
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Average
monthly
rate
25 26 27 28 29 30 31 32 33
TABLE III
PLN/USD and PLN/EUR daily exchange rates
2009
Annual Report 2009
Statistical annex
251
PLN/USD PLN/EUR PLN/USD PLN/EUR
USD/EUR USD/EUR
NBP average exchange rates NBP average exchange rates
November 2009 December 2009
Days
2.8595 4.2430 1.4838 2.7392 4.1264 1.5064
2.8767 4.2500 1.4774 2.7185 4.1044 1.5098
2.9195 4.2907 1.4697 2.7093 4.0954 1.5116
2.8908 4.2662 1.4758 2.7166 4.0946 1.5073
2.8754 4.2680 1.4843 2.7166 4.0946 1.5073
2.8485 4.2437 1.4898 2.7166 4.0946 1.5073
2.8485 4.2437 1.4898 2.7479 4.0660 1.4797
2.8485 4.2437 1.4898 2.7435 4.0725 1.4844
2.8195 4.2245 1.4983 2.7966 4.1266 1.4756
2.8031 4.2043 1.4999 2.8168 4.1437 1.4711
2.8031 4.2043 1.4999 2.8050 4.1390 1.4756
2.7715 4.1420 1.4945 2.8050 4.1390 1.4756
2.7631 4.1135 1.4887 2.8050 4.1390 1.4756
2.7631 4.1135 1.4887 2.8248 4.1410 1.4659
2.7631 4.1135 1.4887 2.8635 4.1667 1.4551
2.7400 4.1008 1.4966 2.8891 4.2028 1.4547
2.7415 4.0967 1.4943 2.9105 4.1818 1.4368
2.7367 4.0909 1.4948 2.9038 4.1806 1.4397
2.7770 4.1288 1.4868 2.9038 4.1806 1.4397
2.7875 4.1485 1.4883 2.9038 4.1806 1.4397
2.7875 4.1485 1.4883 2.9268 4.1862 1.4303
2.7875 4.1485 1.4883 2.9232 4.1857 1.4319
2.7517 4.1201 1.4973 2.9293 4.1729 1.4245
2.7588 4.1210 1.4938 2.8955 4.1654 1.4386
2.7364 4.1143 1.5035 2.8955 4.1654 1.4386
2.7422 4.1341 1.5076 2.8955 4.1654 1.4386
2.8051 4.1808 1.4904 2.8955 4.1654 1.4386
2.8051 4.1808 1.4904 2.8910 4.1606 1.4392
2.8051 4.1808 1.4904 2.8791 4.1550 1.4432
2.7538 4.1431 1.5045 2.8725 4.1244 1.4358
2.8503 4.1082 1.4413
2.7990 4.1734 X 2.8352 4.1427 X
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Average
monthly
rate
34 35 36 37 38 39
2009
252
Statistical annex
N a t i o n a l B a n k o f P o l a n d
1.7 1.7 1.6 1.5 1.5 1.5
6.1 6.3 6.5 6.2 5.6 5.6
2.8 2.9 2.8 2.6 2.6 2.6
6.1 6.3 6.4 6.1 5.5 5.5
2.0 2.0 2.0 2.0 2.0 2.2
4.6 4.6 4.6 5.0 5.0 5.1
2.4 2.1 1.7 1.3 1.3 1.5
6.0 5.7 5.1 4.7 4.3 4.4
4.3 4.3 3.5 2.8 2.8 2.7
5.9 5.7 5.1 4.7 4.3 4.3
6.0 6.1 6.0 5.7 5.2 5.2
5.9 5.2 4.1 3.0 2.9 3.5
13.1 13.0 12.4 11.9 11.5 11.9
17.8 18.0 16.8 17.1 16.7 16.7
11.3 11.1 11.8 11.4 11.6 11.5
13.9 14.0 14.5 14.0 14.1 13.9
14.1 13.8 14.2 13.8 13.7 13.6
14.5 14.5 14.7 14.4 14.3 14.2
9.5 9.0 8.2 8.2 8.0 7.9
8.1 8.0 7.5 7.1 6.6 6.5
8.1 7.8 7.7 7.1 6.3 6.1
7.9 7.6 7.4 6.8 6.1 5.8
7.9 7.6 7.5 6.8 6.1 5.8
8.8 8.5 8.2 7.6 7.2 7.1
9.4 9.1 8.6 8.1 7.6 7.5
8.7 8.5 8.2 7.8 7.3 7.2
8.9 8.6 8.3 7.9 7.4 7.3
11.0 10.8 10.8 10.3 9.9 9.8
7.5 7.1 6.4 5.9 5.6 5.8
7.8 7.7 6.8 6.6 6.2 6.2
8.0 7.5 6.8 6.4 6.0 5.9
7.4 7.1 6.5 6.2 5.7 5.5
7.7 7.3 6.7 6.3 5.9 5.7
9.6 9.4 9.1 8.6 8.3 8.1
December 2008 January February March April May
TABLE IV
Average MFI interest rates on outstanding amounts,
PLN denominated (in per cent)
households and non-
-profit institutions
serving
households
non-financial
corporations
households and non-
-profit institutions
serving
households
non-financial corporations bank overdraft
up to 1 year maturity
over 1 and up to 5 years maturity
over 5 years maturity
total, overdraft excluded
total, overdraft excluded
overnight
with agreed
maturity
redeemable at
notice
overnight
total, overnight excluded
repos
bank overdraft
for consumption
for house purchases
for other purposes
credits cards
up to 1 year maturity
over 1 and up to 5 years maturity
over 5 years maturity
total
up to 1 year maturity
over 1 and up to 5 years maturity
over 5 and up to 10 years maturity
over 10 years maturity
total
up to 1 year maturity
over 1 and up to 5 years maturity
over 5 years maturity
total
total, overdraft excluded
with agreed
maturity
Sector Category Original maturity, period of notice No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
up to 2 years
over 2 years
total
up to 3 months’ notice
over 3 months’ notice
up to 2 years
over 2 years
total
Deposits in
PLN
Loans in
PLN
2009
Annual Report 2009
Statistical annex
253
1.5 1.6 1.6 1.6 1.7 1.7 1.7
2.4 2.4 2.4 2.4 2.4 2.5 2.5
5.4 5.3 5.3 5.2 5.1 5.0 4.8
5.3 5.3 5.2 5.2 5.1 4.9 4.8
2.1 2.1 2.1 2.2 2.2 2.2 2.2
5.2 5.2 5.5 5.8 6.0 6.0 6.0
1.4 1.3 1.3 1.3 1.3 1.3 1.2
4.2 4.1 3.9 3.9 3.9 3.9 3.8
2.8 2.7 2.7 2.7 2.5 2.7 2.6
4.2 4.1 3.9 3.9 3.9 3.9 3.8
5.0 4.9 4.9 4.8 4.7 4.6 4.5
3.1 3.2 4.2 3.9 4.1 4.0 3.7
11.7 11.7 11.5 11.5 11.5 11.7 11.6
16.5 16.3 16.3 16.3 16.3 16.0 16.1
11.9 11.8 11.8 11.9 11.8 12.2 12.1
14.4 14.1 14.1 14.3 14.1 14.5 14.3
14.0 13.8 13.9 14.2 14.0 14.3 14.1
14.5 14.3 14.4 14.5 14.4 14.6 14.5
7.8 8.0 7.6 7.7 7.9 7.9 8.2
6.9 6.5 6.7 6.8 6.6 6.8 6.7
6.3 6.2 6.2 6.2 6.1 6.4 6.3
6.0 5.9 5.9 6.0 5.8 6.0 6.0
6.0 5.9 5.9 6.0 5.9 6.1 6.0
7.2 7.1 7.1 7.1 7.4 7.2 7.3
7.8 7.6 7.5 7.7 7.7 7.9 7.9
7.4 7.2 7.1 7.2 7.2 7.4 7.3
7.5 7.3 7.2 7.3 7.3 7.5 7.5
10.0 9.8 9.9 10.0 9.8 10.0 9.9
6.0 6.0 5.8 5.8 5.9 5.9 5.9
6.5 6.3 6.3 6.3 6.4 6.5 6.5
6.4 6.2 6.1 6.1 6.1 6.3 6.2
5.7 5.5 5.4 5.6 5.4 5.7 5.6
6.1 5.9 5.8 5.9 5.8 6.0 5.9
8.5 8.3 8.3 8.4 8.3 8.5 8.4
June July August September October November December
2009
254
Statistical annex
N a t i o n a l B a n k o f P o l a n d
5.4 5.2 4.5 4.1 3.8
7.3 7.0 6.2 5.7 5.2
7.1 6.9 6.2 5.7 5.3
7.0 5.9 5.4 5.2 4.7
6.8 7.3 5.4 3.9 3.4
5.4 4.5 2.7 4.2 4.1
6.5 6.2 5.4 5.0 4.5
5.5 4.8 3.9 3.2 3.1
6.7 6.0 5.3 5.0 4.7
6.8 6.1 5.4 5.1 4.9
6.7 6.0 5.6 4.8 4.6
6.7 4.4 4.8 3.8 4.5
5.7 5.1 3.4 3.8 3.8
5.6 4.9 4.0 3.4 3.3
5.9 5.2 4.3 3.8 3.6
5.3 4.8 3.9 2.9 2.8
15.9 16.6 16.4 15.9 15.8
16.4 17.0 16.4 16.8 16.9
11.9 11.8 11.6 11.5 12.1
14.7 14.9 15.1 14.9 15.2
17.7 17.1 17.4 16.5 17.0
14.8 15.5 15.4 15.6 16.0
15.3 16.0 15.8 15.7 15.9
22.6 23.2 23.0 22.6 23.1
8.8 8.7 7.5 7.2 7.0
8.0 7.6 6.9 6.5 6.7
8.7 5.0 8.0 5.6 2.0
7.6 9.4 8.0 7.3 11.0
7.1 8.7 8.7 7.4 6.9
8.7 8.5 7.4 7.1 7.0
9.3 9.1 8.2 7.7 7.5
8.2 8.1 7.2 7.1 6.7
- 7.7 16.4 17.8 19.0
- - - - -
- - - - -
8.2 8.1 7.2 7.1 6.8
9.9 9.2 9.1 8.3 8.3
12.8 10.4 12.0 8.0 7.9
12.5 12.7 12.1 11.6 12.6
12.2 12.5 12.9 13.2 13.4
10.1 9.4 9.3 8.4 8.4
10.6 10.1 9.8 9.5 9.1
9.7 10.2 9.2 6.5 7.4
7.0 7.2 10.8 14.9 10.6
- - 17.2 15.9 15.9
10.4 10.1 9.9 10.4 9.8
13.6 14.1 13.9 13.4 13.6
8.5 7.9 7.1 6.8 6.6
8.3 7.8 7.1 6.9 6.5
7.6 6.2 6.0 7.3 6.7
12.8 7.9 12.3 7.8 9.1
8.5 7.9 7.1 6.8 6.6
8.3 7.8 7.0 6.3 6.2
7.7 6.6 7.0 7.0 6.1
- - - 6.5 8.3
- - - 1.9 -
8.3 7.7 7.0 6.3 6.2
8.3 7.8 7.1 6.4 6.4
11.4 11.6 11.1 10.6 11.0
December 2008 January February March April
TABLE V
Average MFI interest rates on new business,
PLN denominated (in per cent)
* Category ”total excluding credit cards” for consumer loans (itm 22) has been added for comparability with real interest rate, which
does not include credit cards.
households
and non-profit
institutions
serving
households
non-financial
corporations
households
and non-profit
institutions
serving
households
non-financial
corporations
with
agreed
maturity
total
total
repos
for
consumption
for house
purchases
for farming
for sole
proprietors
for other
purposes
contracts up
to PLN
4 million,
overdraft
excluded
contracts over
PLN 4 million,
overdraft
excluded
credit cards
variable rate and up to 3 months initial rate fixation
over 3 months and up to 1 year initial rate fixation
over 1 and up to 5 years initial rate fixation
over 5 years initial rate fixation
total excluding credit cards*
total
the annual percentage rate of charge (APRC)
variable rate and up to 3 months initial rate fixation
over 3 months and up to 1 year initial rate fixation
over 1 and up to 5 years initial rate fixation
over 5 and up to 10 years initial rate fixation
over 5 years initial rate fixation
total
the annual percentage rate of charge (APRC)
variable rate and up to 3 months initial rate fixation
over 3 months and up to 1 year initial rate fixation
over 1 and up to 5 years initial rate fixation
over 5 years initial rate fixation
total
variable rate and up to 3 months initial rate fixation
over 3 months and up to 1 year initial rate fixation
over 1 and up to 5 years initial rate fixation
over 5 years initial rate fixation
total
variable rate and up to 3 months initial rate fixation
over 3 months and up to 1 year initial rate fixation
over 1 and up to 5 years initial rate fixation
over 5 years initial rate fixation
total
variable rate and up to 3 months initial rate fixation
over 3 months and up to 1 year initial rate fixation
over 1 and up to 5 years initial rate fixation
over 5 years initial rate fixation
total
variable rate and up 3 months initial rate fixation
over 3 months and up to 1 year initial rate fixation
over 1 and up to 5 years initial rate fixation
over 5 years initial rate fixation
total
total
total
total
with
agreed
maturity
Sector Category Original maturity, period of notice, initial rate fixation No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
over 1 and up to 3 months
up to 1 month
over 3 and up to 6 months
over 6 months and up to 1 year
over 1 and up to 2 years
over 2 years
up to 1 month
over 1 and up to 3 months
over 3 and up to 6 months
over 6 months and up to 1 year
over 1 and up to 2 years
over 2 years
total
Deposits in
PLN
Loans in
PLN
2009
Annual Report 2009
Statistical annex
255
3.5 3.5 3.2 3.2 3.1 3.0 3.0 2.9
5.3 5.2 5.1 4.9 4.9 4.9 4.9 4.9
5.3 5.2 5.2 5.2 5.1 5.1 5.1 5.0
4.8 5.0 4.9 5.1 4.7 4.7 4.6 4.6
3.0 3.3 3.3 3.6 3.9 4.6 4.5 3.7
4.2 2.1 3.8 3.9 4.3 3.9 4.6 3.7
4.5 4.4 4.3 4.2 4.2 4.3 4.2 4.0
3.3 3.1 2.9 2.8 2.8 2.8 2.9 2.8
4.6 4.6 4.4 4.2 4.2 4.3 4.4 4.5
5.3 4.8 4.8 4.7 4.7 4.8 4.6 4.8
4.8 4.8 5.1 4.9 4.9 5.0 4.8 4.7
3.7 4.3 4.5 3.9 4.1 4.4 3.7 4.7
2.5 3.5 3.2 2.8 3.0 2.9 3.7 3.7
3.5 3.3 3.1 3.0 3.0 3.0 3.1 3.0
3.7 3.5 3.4 3.3 3.3 3.3 3.3 3.2
3.5 3.1 3.0 2.7 3.1 2.5 3.2 2.4
15.7 15.6 15.2 15.4 15.6 15.5 15.2 15.1
16.7 16.8 17.2 17.2 17.0 16.4 16.5 16.4
12.2 12.1 12.1 12.1 11.8 11.3 11.0 10.8
15.2 15.0 14.9 14.7 14.8 14.6 14.5 13.7
17.6 17.5 17.0 17.4 17.6 17.3 17.1 18.9
15.8 15.8 16.0 16.0 15.9 15.5 15.4 15.1
15.8 15.7 15.7 15.7 15.7 15.5 15.3 15.1
22.9 22.7 23.0 22.8 22.7 22.1 22.1 21.8
7.1 7.2 7.3 7.4 7.6 7.3 7.1 7.0
7.3 7.4 7.1 6.7 6.8 6.8 6.7 6.9
- 5.3 5.8 - 6.3 5.3 - 7.4
7.5 - 4.2 - 7.9 7.2 9.5 8.5
7.6 - - - - 6.5 7.2 7.8
7.2 7.2 7.3 7.3 7.5 7.2 7.1 7.0
7.7 7.8 7.8 8.1 8.1 8.1 7.9 7.8
6.5 6.8 6.4 6.5 6.6 6.7 6.2 6.2
16.0 - 16.4 19.6 16.1 20.7 19.6 13.5
23.1 17.6 21.9 19.2 - - 22.0 18.4
- - - - - - - -
6.5 6.8 6.4 6.5 6.6 6.7 6.3 6.2
8.4 8.9 8.5 8.5 8.8 8.6 8.3 8.5
8.1 8.6 8.3 8.8 8.5 8.5 8.9 8.8
11.9 10.6 12.5 13.0 13.7 9.2 12.3 12.6
12.9 13.4 11.7 12.7 13.0 13.4 13.7 13.9
8.5 8.9 8.6 8.7 8.9 8.6 8.5 8.6
9.1 8.5 8.8 8.6 9.3 6.6 8.7 8.5
7.1 7.4 7.9 6.9 6.9 8.6 7.1 7.6
12.6 15.0 14.3 15.9 14.2 15.7 15.4 12.3
16.2 16.2 16.4 16.4 16.1 16.5 16.4 16.6
10.0 9.3 9.8 9.5 10.5 7.2 9.6 8.9
13.3 13.4 13.3 13.3 13.4 9.3 12.8 12.5
6.6 7.3 6.7 6.4 6.4 6.6 6.4 6.5
6.7 7.3 6.3 6.9 6.5 6.9 6.9 7.0
7.6 7.3 8.5 8.4 7.5 7.0 6.8 6.4
6.8 7.9 13.1 7.8 6.6 7.8 7.7 6.2
6.7 7.3 6.7 6.4 6.5 6.6 6.5 6.5
6.6 6.8 6.4 6.3 6.5 6.3 6.3 6.4
6.7 7.2 7.6 7.0 6.9 6.3 6.3 7.5
6.2 6.8 8.5 6.9 5.3 6.4 6.9 6.8
- 6.0 - - 7.1 6.1 - -
6.6 6.8 6.6 6.4 6.5 6.3 6.3 6.5
6.6 7.0 6.6 6.4 6.5 6.4 6.3 6.5
10.7 10.7 10.2 10.4 10.6 8.7 10.0 9.7
May June July August September October November December
2009
256
Statistical annex
N a t i o n a l B a n k o f P o l a n d
0.8 0.8 0.5 0.5 0.4
0.9 0.9 1.0 0.9 0.9
1.3 1.3 1.1 1.3 1.4
2.8 2.5 1.6 1.2 1.1
3.3 2.6 2.3 2.0 1.7
3.7 3.1 2.9 2.5 2.0
3.8 3.2 3.0 2.7 2.4
3.4 2.9 2.6 2.6 2.1
2.9 2.4 2.2 2.2 2.3
3.1 2.6 2.0 1.6 1.4
0.9 0.6 0.4 0.3 0.3
2.4 1.8 1.2 1.1 0.9
3.6 2.4 2.0 1.8 1.6
3.4 2.9 2.0 2.3 1.6
3.9 4.5 2.5 3.0 1.6
2.2 2.4 1.7 2.9 0.6
2.9 1.6 1.6 1.4 -
2.5 1.8 1.3 1.1 0.9
2.6 2.0 1.4 1.2 1.0
- - - - -
5.9 4.8 4.2 4.3 3.2
6.6 5.6 4.3 5.4 5.1
- - - 9.1 7.4
- - - - -
- - - - -
6.6 5.6 4.3 5.4 5.1
7.1 6.4 4.6 6.1 5.6
7.1 6.5 5.9 5.9 5.6
6.3 5.3 5.0 4.1 4.4
- - - 4.6 3.6
- - - - -
- - - - -
7.1 6.4 5.7 5.2 4.6
7.3 6.7 6.0 5.7 4.9
5.0 5.1 4.0 4.1 3.2
4.0 - 1.9 3.1 2.1
3.8 - 2.5 4.1 1.9
- - - - -
5.0 5.1 3.9 4.1 3.2
6.1 5.7 4.9 4.7 4.0
4.3 3.5 3.0 2.8 2.6
6.2 4.8 4.4 4.2 3.9
5.4 3.6 3.7 3.8 4.3
3.0 - 2.5 6.1 5.9
4.1 3.5 - - -
6.1 4.7 4.4 4.3 4.1
4.6 4.3 4.7 4.7 4.4
5.1 3.1 5.1 2.7 2.9
3.6 - - 2.9 3.2
- - - - -
4.6 4.2 4.7 3.9 4.1
4.9 4.3 4.6 4.0 4.1
4.9 4.4 4.6 4.0 4.1
December 2008 January February March April
TABLE VI
Average MFI interest rates on new business,
EUR denominated (in per cent)
* Category calculated on a basis of an outstanding amounts. Excluded from ”total” average.
households and
non-profit
institutions
serving
households
non-financial
corporations
households and
non-profit
institutions
serving
households
non-financial
corporations
redeemable
at notice
over 6 months and up to 1 year
total
repos
for
consumption
for house
purchases
for other
purposes
contracts up to
EUR 1 million,
overdraft
excluded
contracts over
EUR 1 million,
overdraft
excluded
over 1 and up to 5 years initial rate fixation
over 5 years initial rate fixation
total
total
bank overdaft*
variable rate and up to 3 months initial rate fixation
over 3 months and up to 1 year initial rate fixation
over 1 and up to 5 years initial rate fixation
over 5 years initial rate fixation
total
over 3 months and up to 1 year initial rate fixation
over 1 and up to 5 years initial rate fixation
over 5 years initial rate fixation
total
total
total
variable rate and up to 3 months initial rate fixation
with agreed
maturity
with agreed
maturity
Sector Category
Original maturity, period of notice, initial rate
fixation No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
up to 3 months’ notice*
overnight*
over 3 months’ notice*
up to 1 month
over 1 and up to 3 months
over 3 and up to 6 months
over 1 and up to 2 years
over 2 years
total
overnight*
bank overdaft*
up to 1 month
over 1 and up to 3 months
over 6 months and up to 1 year
over 1 and up to 2 years
over 2 years
total
variable rate and up to 3 months initial rate fixation
over 3 months and up to 1 year initial rate fixation
over 1 and up to 5 years initial rate fixation
over 5 years initial rate fixation
total
the annual percentage rate of charge (APRC)
variable rate and up to 3 months initial rate fixation
over 3 months and up to 1 year initial rate fixation
over 1 and up to 5 years initial rate fixation
over 5 and up to 10 years initial rate fixation
over 5 years initial rate fixation
total
the annual percentage rate of charge (APRC)
variable rate and up to 3 months initial rate fixation
over 3 months and up to 1 year initial rate fixation
over 3 and up to 6 months
Deposits
in EUR
Loans in
EUR
2009
Annual Report 2009
Statistical annex
257
0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3
0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9
1.3 1.4 1.3 1.3 1.4 1.1 1.2 1.2
0.9 0.8 0.7 0.5 0.6 0.7 0.8 0.6
1.6 1.5 1.5 1.4 1.2 1.3 1.4 1.2
1.9 1.9 1.7 1.7 1.9 1.7 1.7 1.5
2.0 1.9 1.9 2.0 1.9 2.0 1.9 1.6
2.0 1.6 2.1 2.0 1.7 1.7 1.7 1.8
2.3 2.4 2.7 2.5 2.4 2.1 2.2 2.0
1.2 1.1 1.1 1.0 1.0 1.1 1.1 1.0
0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1
0.7 0.7 0.4 0.4 0.3 0.3 0.3 0.4
1.3 1.2 1.1 1.0 0.9 1.0 0.9 1.1
2.3 1.1 1.5 1.4 1.5 1.3 1.4 1.3
2.9 1.8 1.6 1.3 2.1 2.3 2.7 2.6
0.6 1.0 1.3 0.4 1.0 1.2 1.1 0.7
0.3 1.7 0.9 1.1 1.9 0.4 2.2 1.4
0.7 0.7 0.4 0.4 0.4 0.4 0.4 0.4
0.8 0.8 0.5 0.5 0.5 0.5 0.5 0.5
- - - - - - - -
2.9 3.0 2.8 3.3 3.2 3.3 3.2 3.4
5.2 5.6 5.1 7.1 10.8 11.2 2.3 6.8
7.3 - - 5.7 7.3 8.3 - 8.9
- - - - - - - -
- - - - - - - -
5.7 5.6 5.1 6.8 10.0 10.8 2.3 7.6
6.2 6.1 5.9 7.6 11.1 11.2 2.7 7.8
5.3 4.6 5.3 4.9 5.1 4.9 5.2 4.9
4.5 4.3 4.9 5.4 5.5 5.3 5.4 4.6
- - - - - - - -
3.4 - - - - - - -
- - - - - 7.5 - -
4.7 4.6 5.0 5.3 5.4 5.1 5.2 4.9
5.0 5.1 5.1 5.6 5.8 5.4 5.7 5.3
4.2 4.7 3.8 3.3 4.5 5.0 3.1 4.2
1.9 - 1.5 5.4 - - 1.3 2.9
2.1 1.8 1.5 1.4 - - 1.2 2.4
- - - - - - - -
3.9 4.7 3.7 3.9 4.5 5.0 3.1 4.2
4.4 4.6 4.7 4.8 5.2 5.1 3.9 4.8
2.8 2.9 2.7 2.7 2.8 2.8 2.7 2.8
3.2 3.7 3.3 3.8 2.9 2.8 2.9 3.0
3.1 4.4 4.2 2.9 3.9 4.0 2.4 3.6
5.2 1.8 2.8 3.7 2.8 3.2 3.1 2.1
- - - 0.5 - 1.3 - 4.1
3.3 3.7 3.3 3.7 2.9 2.9 2.9 3.0
4.3 4.0 3.8 3.2 4.0 3.8 3.5 3.9
3.0 4.1 4.3 4.1 4.4 4.0 3.9 3.8
2.7 2.6 6.0 1.6 2.4 - - 1.6
4.3 - - 0.5 - - - -
4.0 4.0 4.1 3.7 4.0 3.9 3.6 3.8
3.8 4.0 4.0 3.7 3.7 3.7 3.5 3.8
3.9 4.0 4.1 3.7 3.8 3.9 3.5 3.8
May June July August September October November December
2009
258
Statistical annex
N a t i o n a l B a n k o f P o l a n d
Monetary
financial
institutions
General
government
Other
domestic
residents*
Monetary
financial
institutions
General
government
Other
domestic
residents*
Money
Market Fund
Shares/Units
1 2 3 4 5 6 7 8 9
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Period
Loans to
domestic
residents
Holdings of
securities
other than
shares
issued by
domestic
residents
724 256.3 76 421.5 24 417.1 623 417.7 177 197.4 22 586.5 149 412.9 5 198.0 272.5
757 376.4 91 983.8 24 529.9 640 862.7 171 454.9 21 465.8 145 016.5 4 972.6 323.9
764 368.0 83 895.0 24 542.6 655 930.4 176 169.5 17 374.1 153 629.5 5 165.9 294.2
767 961.3 83 724.0 24 261.5 659 975.8 186 281.7 20 365.9 161 032.8 4 883.0 300.0
748 816.8 76 693.4 24 439.6 647 683.8 186 078.1 20 370.0 161 232.5 4 475.6 315.2
750 752.2 71 043.0 24 589.9 655 119.3 193 432.6 31 236.9 157 653.5 4 542.2 321.7
756 919.3 73 414.0 24 965.5 658 539.8 198 785.5 37 293.6 157 195.1 4 296.8 326.2
738 139.9 67 822.3 24 978.2 645 339.4 199 664.3 38 864.1 156 736.5 4 063.7 335.9
744 537.5 69 612.7 26 068.3 648 856.5 205 980.2 45 241.8 156 632.5 4 105.9 346.0
757 460.9 70 497.1 26 710.5 660 253.3 207 667.8 48 972.9 154 114.4 4 580.5 363.2
770 398.8 66 358.8 29 989.8 674 050.2 219 026.5 59 490.5 155 218.5 4 317.5 374.9
776 463.6 70 776.1 37 500.7 668 186.8 212 443.2 52 423.4 155 663.8 4 356.0 371.7
786 521.5 74 085.1 44 351.5 668 084.9 204 166.9 46 169.9 154 165.5 3 831.5 377.0
Deposits
of domestic
residents
Monetary
financial
institutions
General
government
Other
domestic
residents* overnight
with
agreed
maturity
redeemable
at notice
repurchase
agreements
Money
Market
Fund
Shares/Units
1 2 3 4 5 6 7 8 9
665 001.9 68 581.7 21 138.4 575 281.8 252 621.0 319 138.0 54.6 3 468.2 998.3
682 852.0 73 352.0 29 321.7 580 178.3 245 459.8 331 033.2 89.7 3 595.6 998.3
679 668.3 65 892.3 24 173.8 589 602.2 249 149.6 336 042.4 56.5 4 353.7 998.3
691 148.4 72 424.1 26 562.5 592 161.8 258 236.3 331 316.7 58.0 2 550.8 998.3
682 767.1 66 912.3 28 659.1 587 195.7 252 319.9 332 313.4 60.8 2 501.6 883.2
684 025.8 61 747.4 25 969.1 596 309.3 263 884.9 329 757.3 60.5 2 606.6 883.2
695 418.8 60 915.1 27 730.5 606 773.2 276 892.7 326 109.3 81.8 3 689.4 883.2
687 144.3 53 770.5 29 449.5 603 924.3 271 309.9 328 069.5 77.0 4 467.9 883.2
694 927.7 55 782.1 38 319.4 600 826.2 279 332.2 317 383.2 63.5 4 047.3 915.0
700 541.4 55 226.4 37 901.4 607 413.6 282 259.8 321 689.3 65.2 3 399.3 915.0
721 395.6 57 498.7 36 433.6 627 463.3 288 195.6 329 358.5 69.9 9 839.3 915.0
709 085.1 55 512.8 37 376.5 616 195.8 291 139.2 322 464.1 72.4 2 520.1 915.0
715 565.8 53 764.4 26 245.8 635 555.6 297 590.3 335 214.7 78.5 2 672.1 915.0
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Period
TABLE VII
Aggregated balance sheet of other monetary financial institutions
(million zloty)
ASSETS
TABLE VII
Aggregated balance sheet of other monetary financial
institutions (million zloty)
LIABILITIES
* Non-monetary finacial institutions and non-financial sector.
** Excluding financial fixed assets, included in column 10.
* Non-monetary financial institutions, local government, social security funds and non-financial sector.
2009
Annual Report 2009
Statistical annex
259
Holdings of
shares/other
equity issued by
domestic
residents
Monetary
financial
institutions
Other
domestic
residents*
External
assets
10 11 12 13
7 307.6 2 861.5 4 446.1 81 193.5
7 237.0 2 850.3 4 386.7 83 655.2
7 295.7 2 877.9 4 417.8 77 137.7
7 421.6 2 876.2 4 545.4 70 056.3
7 476.3 2 879.4 4 596.9 66 511.6
7 549.6 2 952.6 4 597.0 63 827.8
7 557.7 2 966.7 4 591.0 62 863.5
7 733.1 2 959.6 4 773.5 58 765.8
7 749.2 2 973.5 4 775.7 59 280.1
7 965.5 2 985.8 4 979.7 54 750.5
12 508.2 7 425.2 5 083.0 54 634.7
13 028.3 7 767.5 5 260.8 49 488.1
11 173.0 5 988.3 5 184.7 47 057.9
Fixed
assets**
Remaining
assets
Total
assets
14 15 16
36 749.0 63 694.3 1 090 670.6
36 835.5 68 631.0 1 125 513.9
36 958.2 67 010.2 1 129 233.5
36 973.4 62 350.0 1 131 344.3
37 110.1 58 763.9 1 105 072.0
37 153.5 54 661.2 1 107 698.6
37 250.0 47 823.9 1 111 526.1
37 396.4 45 112.1 1 087 147.5
37 501.4 42 974.7 1 098 369.1
37 613.2 41 418.0 1 107 239.1
37 657.8 41 833.7 1 136 434.6
37 684.7 39 098.3 1 128 577.9
37 952.5 38 255.5 1 125 504.3
Debt
securities
issued
Capital
and
reserves Tier-1
capital
10 11 12
16 849.9 117 224.3 74 262.4
16 270.3 117 998.1 74 310.9
16 528.0 118 969.3 74 288.2
16 299.9 121 665.1 75 913.5
16 175.0 125 068.2 78 344.4
15 597.4 130 537.2 82 923.3
15 784.5 139 476.7 90 459.8
15 748.0 140 345.1 90 701.3
16 388.1 141 249.6 90 675.9
16 385.8 142 615.9 91 526.6
18 947.3 144 184.1 91 726.7
21 629.1 145 518.1 91 824.2
23 804.2 149 605.6 94 823.9
Tier-2
capital Reserves
External
liabilities
Remaining
liabilities
Total
liabilities
13 14 15 16 17
1 289.0 41 672.9 211 031.4 79 564.8 1 090 670.6
1 644.1 42 043.1 221 332.8 86 062.4 1 125 513.9
1 071.2 43 609.9 231 426.5 81 643.1 1 129 233.5
986.1 44 765.5 226 136.9 75 095.7 1 131 344.3
1 000.5 45 723.3 209 880.4 70 298.1 1 105 072.0
912.1 46 701.8 212 873.6 63 781.4 1 107 698.6
1 130.7 47 886.2 208 378.6 51 584.3 1 111 526.1
1 472.4 48 171.4 193 803.3 49 223.6 1 087 147.5
1 368.9 49 204.8 194 064.2 50 824.5 1 098 369.1
1 385.3 49 704.0 197 592.0 49 189.0 1 107 239.1
1 828.4 50 629.0 195 189.3 55 803.3 1 136 434.6
2 252.6 51 441.3 196 836.8 54 593.8 1 128 577.9
2 174.0 52 607.7 190 626.2 44 987.5 1 125 504.3
2009
260
Statistical annex
N a t i o n a l B a n k o f P o l a n d
Loans to
domestic
residents
Other
monetary
financial
institutions
General
government
Other
domestic
residents *
Holdings of
securities
other than
shares
issued by
domestic
residents
Other
monetary
financial
institutions
General
government
Holdings of
shares/other
equity
issued by
domestic
residents
Other
monetary
financial
institutions
Other
domestic
residents*
External
assets
Fixed
assets**
Remaining
assets
Total
assets
1 2 3 4 5 6 7 8 9 10 11 12 13 14
XII 2008
I 2009
II
III
IV
V
XII
VII
VIII
IX
X
XI
XII
Period
19 073.5 19 050.4 0.0 23.1 0.0 0.0 0.0 53.9 0.0 53.9 189 827.4 2 110.6 782.6 211 848.0
14 672.6 14 650.0 0.0 22.6 0.0 0.0 0.0 53.9 0.0 53.9 210 454.4 2 111.7 1 413.7 228 706.3
13 696.7 13 673.6 0.0 23.1 0.0 0.0 0.0 53.9 0.0 53.9 233 202.3 2 109.2 1 090.5 250 152.6
13 476.2 13 452.6 0.0 23.6 0.0 0.0 0.0 53.9 0.0 53.9 222 485.7 2 111.1 1 278.6 239 405.5
16 302.3 16 277.7 0.0 24.6 0.0 0.0 0.0 53.9 0.0 53.9 216 752.9 2 111.2 1 089.0 236 309.3
13 046.5 13 021.2 0.0 25.3 0.0 0.0 0.0 53.9 0.0 53.9 222 183.1 2 111.1 966.6 238 361.2
12 705.9 12 680.4 0.0 25.5 0.0 0.0 0.0 53.9 0.0 53.9 219 102.1 2 117.8 1 107.1 235 086.8
11 584.6 11 558.9 0.0 25.7 0.0 0.0 0.0 53.9 0.0 53.9 216 893.3 2 119.1 797.2 231 448.1
8 924.3 8 898.4 0.0 25.9 0.0 0.0 0.0 53.9 0.0 53.9 223 089.9 2 122.7 637.4 234 828.2
8 474.5 8 448.4 0.0 26.1 0.0 0.0 0.0 53.9 0.0 53.9 231 195.5 2 124.0 551.6 242 399.5
15 122.9 15 097.0 0.0 25.9 0.0 0.0 0.0 53.9 0.0 53.9 244 936.2 2 127.0 718.1 262 958.1
12 627.7 12 602.3 0.0 25.4 0.0 0.0 0.0 53.9 0.0 53.9 239 992.5 2 126.4 1 630.8 256 431.3
15 655.4 15 630.0 0.0 25.4 0.0 0.0 0.0 53.9 0.0 53.9 232 466.0 2 091.3 382.4 250 649.0
TABLE VIII
Balance sheet of the National Bank of Poland (million zloty)
ASSETS
Loans to
domestic
residents
General
government
Other
domestic
residents*
Holdings of
securities other
than shares
issued by
domestic
residents
General
government
Other
domestic
residents*
Holdings of
shares/other
equity** issued
by other
domestic
residents*
External
assets
Fixed
assets***
Remaining
assets****
Total
assets
1 2 3 4 5 6 7 8 9 10 11
XII 2008
I 2009
II
III
IV
V
XII
VII
VIII
IX
X
XI
XII
Period
647 857.9 24 417.1 623 440.8 154 610.9 149 412.9 5 198.0 4 500.0 271 020.9 38 859.6 53 515.2 1 170 364.5
665 415.2 24 529.9 640 885.3 149 989.1 145 016.5 4 972.6 4 440.6 294 109.6 38 947.2 61 122.7 1 214 024.4
680 496.1 24 542.6 655 953.5 158 795.4 153 629.5 5 165.9 4 471.7 310 340.0 39 067.4 59 227.3 1 252 397.9
684 260.9 24 261.5 659 999.4 165 915.8 161 032.8 4 883.0 4 599.3 292 542.0 39 084.5 55 068.3 1 241 470.8
672 148.0 24 439.6 647 708.4 165 708.1 161 232.5 4 475.6 4 650.8 283 264.5 39 221.3 50 095.4 1 215 088.1
679 734.5 24 589.9 655 144.6 162 195.7 157 653.5 4 542.2 4 650.9 286 010.9 39 264.6 46 923.8 1 218 780.4
683 530.8 24 965.5 658 565.3 161 491.9 157 195.1 4 296.8 4 644.9 281 965.6 39 367.8 39 903.2 1 210 904.2
670 343.3 24 978.2 645 365.1 160 800.2 156 736.5 4 063.7 4 827.4 275 659.1 39 515.5 36 885.5 1 188 031.0
674 950.7 26 068.3 648 882.4 160 738.4 156 632.5 4 105.9 4 829.6 282 370.0 39 624.1 34 533.8 1 197 046.6
686 989.9 26 710.5 660 279.4 158 694.9 154 114.4 4 580.5 5 033.6 285 946.0 39 737.2 32 919.8 1 209 321.4
704 065.9 29 989.8 674 076.1 159 536.0 155 218.5 4 317.5 5 136.9 299 570.9 39 784.8 33 323.6 1 241 418.1
705 712.9 37 500.7 668 212.2 160 019.8 155 663.8 4 356.0 5 314.7 289 480.6 39 811.1 31 777.6 1 232 116.7
712 461.8 44 351.5 668 110.3 157 997.0 154 165.5 3 831.5 5 238.6 279 523.9 40 043.8 28 460.6 1 223 725.7
TABLE IX
Consolidated balance sheet of monetary financial institutions
(million zloty)
ASSETS
* Non-monetary financial institutions and non-financial sector.
** Excluding financial fixed assets, included in column 8.
* Non-monetary financial institutions and non-financial sector.
** Including units in investment funds and financial fixed assets.
*** Excluding financial fixed assets, incorporated in column 7.
**** Including rights issues.
2009
Annual Report 2009
Statistical annex
261
Currency in
circulation
Deposits of
domestic
residents
central
government
other
monetary
financial
institutions
other
domestic
residents*
Debt
securities
issued
Tier-1
capital Reserves External
liabilities
Remaining
liabilities
Total
liabilities
1 2 3 4 5 6
Capital
and
reserves
7 8 9 10 11 12
101 774.0 53 096.6 25 304.4 21 282.3 6 509.9 18 029.7 2 717.2 1 500.0 1 217.2 12 584.6 23 645.9 211 848.0
97 497.0 48 894.8 27 275.7 14 392.6 7 226.5 17 433.7 2 724.3 1 500.0 1 224.3 16 746.2 45 410.3 228 706.3
99 680.1 63 830.9 28 923.6 27 264.4 7 642.9 13 500.0 2 729.2 1 500.0 1 229.2 13 837.6 56 574.8 250 152.6
99 621.1 53 170.9 25 205.3 20 399.4 7 566.2 16 500.0 2 735.7 1 500.0 1 235.7 13 367.3 54 010.5 239 405.5
102 066.9 56 881.8 24 285.7 25 257.7 7 338.4 16 500.0 2 741.8 1 500.0 1 241.8 17 441.1 40 677.7 236 309.3
100 848.4 49 245.7 23 700.9 21 648.6 3 896.2 27 500.0 2 746.1 1 500.0 1 246.1 17 594.7 40 426.3 238 361.2
101 298.3 40 769.3 24 550.3 14 763.9 1 455.1 33 422.8 2 752.9 1 500.0 1 252.9 16 071.9 40 771.6 235 086.8
100 523.1 49 384.7 26 145.2 22 392.6 846.9 35 000.0 2 758.4 1 500.0 1 258.4 16 413.6 27 368.3 231 448.1
100 031.6 48 262.3 20 271.8 27 184.7 805.8 41 201.0 2 765.3 1 500.0 1 265.3 18 962.4 23 605.6 234 828.2
98 714.9 48 080.8 20 473.2 26 702.7 904.9 45 000.0 2 769.9 1 500.0 1 269.9 20 463.8 27 370.1 242 399.5
98 656.6 51 679.3 21 054.3 29 610.3 1 014.7 54 966.0 2 776.9 1 500.0 1 276.9 26 642.8 28 236.5 262 958.1
97 174.2 60 341.5 28 370.5 29 799.6 2 171.4 47 719.6 2 781.6 1 500.0 1 281.6 23 649.4 24 765.0 256 431.3
99 954.1 61 972.3 37 856.2 22 632.2 1 483.9 40 984.4 2 745.2 1 500.0 1 245.2 20 701.1 24 291.9 250 649.0
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Period
TABLE VIII
Balance sheet of the National Bank of Poland (million zloty)
LIABILITIES
Currency in
circulation
Deposits of
central
government
Deposits of
other
domestic
residents*
overnight
with
agreed
maturity
redeemable
at
notice
repurchase
agreements
Debt
securities
issued
Capital
and
reserves
External
liabilities
Remaining
liabilities
Excess of
inter-MFI
liabilities
Total
liabilities
1 2 3 4 5 6 7 9
Money
Market
Fund
Shares/
Units
8 10 11 12 13 14
90 812.3 42 420.7 581 791.7 259 130.9 319 138.0 54.6 3 468.2 725.8 12 293.1 117 080.0 223 616.0 103 210.7 -1 585.8 1 170 364.5
88 575.0 43 714.3 587 404.8 252 686.3 331 033.2 89.7 3 595.6 674.4 12 238.2 117 872.1 238 079.0 131 472.7 -6 006.1 1 214 024.4
90 806.7 51 438.2 597 245.1 256 792.5 336 042.4 56.5 4 353.7 704.1 12 653.9 118 820.6 245 264.1 138 217.9 -2 752.7 1 252 397.9
91 060.8 46 961.9 599 728.0 265 802.5 331 316.7 58.0 2 550.8 698.3 12 434.0 121 524.6 239 504.2 129 106.2 452.8 1 241 470.8
92 309.4 53 916.8 594 534.1 259 658.3 332 313.4 60.8 2 501.6 568.0 12 305.0 124 930.6 227 321.5 110 975.8 -1 773.1 1 215 088.1
92 144.4 47 617.7 600 205.5 267 781.1 329 757.3 60.5 2 606.6 561.5 11 860.5 130 330.7 230 468.3 104 207.7 1 384.1 1 218 780.4
92 270.5 42 494.4 608 228.3 278 347.8 326 109.3 81.8 3 689.4 557.0 11 913.7 139 262.9 224 450.5 92 355.9 -629.0 1 210 904.2
91 499.3 51 842.1 604 771.2 272 156.8 328 069.5 77.0 4 467.9 547.3 11 883.9 140 143.9 210 216.9 76 591.9 534.5 1 188 031.0
90 953.3 65 504.1 601 632.0 280 138.0 317 383.2 63.5 4 047.3 569.0 12 347.3 141 041.4 213 026.6 74 430.1 -2 457.2 1 197 046.6
89 665.1 64 604.1 608 318.5 283 164.7 321 689.3 65.2 3 399.3 551.8 12 412.9 142 400.0 218 055.8 76 559.1 -3 245.9 1 209 321.4
89 428.4 66 043.9 628 478.0 289 210.3 329 358.5 69.9 9 839.3 540.1 14 422.8 139 535.8 221 832.1 84 039.8 -2 902.8 1 241 418.1
88 222.7 67 176.1 618 367.2 293 310.6 322 464.1 72.4 2 520.1 543.3 16 925.3 140 532.2 220 486.2 79 358.8 504.9 1 232 116.7
89 776.8 48 878.0 637 039.5 299 074.2 335 214.7 78.5 2 672.1 538.0 18 618.7 146 362.5 211 327.3 69 279.4 1 905.5 1 223 725.7
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Period
TABLE IX
Consolidated balance sheet of monetary financial institutions
(million zloty)
LIABILITIES
* Non-monetary financial institutions, local government, social security funds and non-financial sector.
* Non-monetary financial institutions, local government, social security funds and non-financial sector.
2009
262
Statistical annex
N a t i o n a l B a n k o f P o l a n d
Currency in
circulation
(excluding
vault cash)
Currency in
circulation
(including
vault cash)
Cash in
banks vaults
Overnight
deposits
and other
liabilities
Households of which
individuals
Non-
-monetary
financial
institutions
Non-
-financial
corporations
Non-profit
institutions
serving
households
Local
government
Social
security
funds
M1
90 812.3 101 774.0 10 961.7 259 130.9 144 150.1 120 426.1 10 233.8 71 713.4 7 053.1 17 300.7 8 679.8 349 943.1
88 575.0 97 497.0 8 922.0 252 686.2 145 781.2 123 862.3 11 158.1 67 745.7 6 426.8 13 180.7 8 393.8 341 261.2
90 806.7 99 680.1 8 873.4 256 792.5 150 916.2 130 105.0 10 661.7 66 034.1 6 292.8 14 356.7 8 531.0 347 599.2
91 060.8 99 621.1 8 560.3 265 802.5 155 978.5 135 425.4 10 333.1 69 107.9 6 525.6 15 131.6 8 725.7 356 863.3
92 309.4 102 066.9 9 757.5 259 658.3 159 385.0 139 498.3 10 745.7 61 655.0 6 506.8 13 687.7 7 678.2 351 967.7
92 144.3 100 848.4 8 704.1 267 781.1 161 924.2 141 900.8 12 784.5 66 565.9 6 732.4 15 156.8 4 617.5 359 925.4
92 270.4 101 298.3 9 027.9 278 347.8 168 072.9 147 681.4 10 880.1 75 417.0 6 816.3 15 242.2 1 919.4 370 618.2
91 499.3 100 523.1 9 023.8 272 156.9 169 241.1 148 789.6 11 192.9 68 721.9 6 936.0 13 737.6 2 327.4 363 656.1
90 953.3 100 031.6 9 078.3 280 138.0 171 729.6 151 134.8 13 123.4 71 364.1 7 401.9 14 946.7 1 572.3 371 091.3
89 665.1 98 714.9 9 049.8 283 164.7 173 175.5 152 002.1 12 145.0 72 872.1 7 335.9 16 434.4 1 201.7 372 829.8
89 428.4 98 656.6 9 228.2 289 210.3 172 904.4 151 808.4 23 600.8 67 839.3 7 219.0 16 169.2 1 477.6 378 638.7
88 222.7 97 174.2 8 951.5 293 310.5 175 097.2 154 183.4 12 316.6 79 053.2 7 412.4 16 496.1 2 935.0 381 533.2
89 776.8 99 954.1 10 177.3 299 074.2 185 105.0 159 418.0 10 369.9 75 991.9 7 252.4 18 014.0 2 340.9 388 851.0
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Period
1 2 3 4 5 6 7 8 9 10 11 12
TABLE Xa
M3 and counterparts (million zloty)
M3
External
assets
External
liabilities
Credit to other
domestic
residents
Loans to other
domestic
residents Households of which
individuals
Non-monetary
financial
institutions
Non-financial
corporations
Non-profit
institutions
serving
households
Local
government
47 404.9 271 020.9 223 616.0 653 635.2 640 950.0 375 998.1 321 099.9 21 342.5 223 856.5 2 243.9 17 509.1
56 030.6 294 109.6 238 079.0 670 764.4 658 295.0 389 358.6 333 780.9 20 118.8 229 171.2 2 236.7 17 409.6
65 076.0 310 340.1 245 264.1 685 897.8 673 220.5 399 807.4 343 300.6 20 754.2 233 171.8 2 220.1 17 266.9
53 037.8 292 542.0 239 504.2 689 447.3 676 923.1 402 250.8 345 156.3 21 598.0 233 955.1 2 195.5 16 923.6
55 943.0 283 264.6 227 321.5 677 424.1 665 119.4 396 377.2 338 855.9 20 398.2 228 728.7 2 204.4 17 410.9
55 542.5 286 010.9 230 468.4 684 932.7 672 600.7 403 303.0 344 955.5 21 100.5 228 504.3 2 236.9 17 456.0
57 515.0 281 965.6 224 450.6 688 581.4 676 429.4 406 471.9 348 166.7 22 507.5 227 354.5 2 231.2 17 664.2
65 442.1 275 659.0 210 216.9 675 877.4 663 653.9 399 321.7 341 023.4 20 953.6 222 803.1 2 286.7 18 288.8
69 343.5 282 370.1 213 026.6 679 876.6 667 580.5 402 858.0 344 291.6 22 221.3 221 457.3 2 345.8 18 698.0
67 890.2 285 946.0 218 055.8 692 749.7 679 474.2 412 490.3 353 447.4 21 789.7 223 572.4 2 426.9 19 194.8
77 738.7 299 570.9 221 832.2 708 496.8 695 254.4 421 175.9 361 712.8 27 393.3 222 973.7 2 533.2 20 151.2
68 994.4 289 480.6 220 486.2 707 888.3 694 323.4 417 561.3 357 415.1 26 931.9 221 094.1 2 625.0 20 989.2
68 196.5 279 523.9 211 327.4 709 965.9 696 354.2 420 990.1 361 588.2 27 861.7 216 540.6 2 718.0 24 483.8
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Period
2 3 4 5 6 7 8 9 10 11
Net
external
assets
1
TABLE Xb
M3 and counterparts (million zloty)
M3 counterparts
2009
Annual Report 2009
Statistical annex
263
Households of which
individuals
Non-
-monetary
financial
institutions
Non-
-financial
corporations
Non-profit
institutions
serving
households
Local
government
Social
security
funds
Deposits
redeemable
at notice up
to 3 months
M2
Repurchase
agreements
Debt
securities
issued with
maturity up
to 2 years
Money
market fund
shares
M3
188 500.8 183 940.1 24 653.7 77 680.5 6 926.7 4 219.8 8 303.7 11.6 660 239.9 3 468.2 1 797.5 725.8 666 231.3
196 782.2 192 462.3 23 716.4 76 970.5 7 470.4 9 252.9 7 529.0 45.3 663 028.0 3 595.6 1 553.7 674.4 668 851.7
201 272.7 197 020.9 23 690.6 76 365.8 7 694.9 10 174.6 7 346.2 10.6 674 154.7 4 353.7 1 710.8 704.1 680 923.3
201 476.2 197 429.5 23 407.0 73 683.0 7 444.1 9 595.3 6 381.5 10.8 678 861.3 2 550.8 1 568.1 698.3 683 678.5
199 011.6 195 090.9 23 351.2 75 510.5 7 460.7 10 797.7 7 089.4 13.2 675 202.1 2 501.6 1 754.0 568.0 680 025.8
198 749.9 194 991.8 21 110.8 74 328.6 7 528.5 11 644.3 7 145.5 12.1 680 445.2 2 606.6 1 780.1 561.5 685 393.4
197 056.2 193 431.5 22 966.9 72 717.0 7 509.8 9 917.3 6 637.7 31.4 687 454.6 3 689.4 1 992.5 557.0 693 693.4
196 837.3 193 099.0 20 256.0 76 281.1 7 675.2 11 405.8 6 265.8 27.4 682 404.8 4 467.9 2 007.7 547.3 689 427.7
194 079.4 190 568.1 19 329.1 71 056.5 7 436.3 9 752.4 6 131.4 13.4 678 889.8 4 047.3 1 885.0 569.0 685 391.1
193 793.7 189 938.3 20 978.4 74 222.0 7 556.5 9 685.5 6 434.0 13.9 685 513.8 3 399.3 1 803.0 551.8 691 267.9
194 420.5 190 250.3 22 549.9 79 489.4 7 837.0 10 152.8 5 834.8 17.7 698 940.7 9 839.3 1 873.4 540.2 711 193.5
195 468.1 191 328.6 20 423.9 75 069.9 7 463.1 9 228.8 5 691.6 18.7 694 897.4 2 520.1 1 899.8 543.4 699 860.6
198 489.9 193 889.5 22 094.7 88 925.7 6 885.1 4 387.1 5 618.9 21.9 715 274.2 2 672.1 1 842.9 538.0 720 327.2
310 285.2
321 721.5
326 545.0
321 987.2
323 221.2
320 507.7
316 805.0
318 721.3
307 785.1
312 670.0
320 284.3
313 345.4
326 401.3
Deposits
and other
liabilities
with agreed
maturity up
to 2 years
and blocked
deposits
13 14 15 16 17 18 19 20 21 22 23 24 25 26
Holdings of
securities
other than
shares Non-financial
corporations
local
government
Holdings of
shares/other
equity non-monetary
financial
institutions
non-financial
corporations
Credit to central
government, net
non-monetary
financial
institutions
8 185.3 825.9 4 372.1 2 987.3 4 499.9 3 057.7 1 442.2 110 913.0
8 028.9 754.2 4 218.4 3 056.3 4 440.5 3 020.6 1 419.9 105 366.1
8 205.7 832.8 4 333.1 3 039.8 4 471.6 3 049.0 1 422.6 106 427.1
7 924.9 750.7 4 132.3 3 041.9 4 599.2 3 046.4 1 552.9 118 366.9
7 654.0 528.4 3 947.2 3 178.3 4 650.8 3 046.4 1 604.4 111 166.1
7 681.2 554.2 3 988.0 3 138.9 4 650.8 3 039.7 1 611.1 114 030.8
7 507.2 561.0 3 735.8 3 210.4 4 644.8 3 014.2 1 630.6 118 591.6
7 396.2 527.9 3 535.7 3 332.5 4 827.3 3 174.5 1 652.8 108 251.3
7 466.7 456.9 3 649.0 3 360.8 4 829.5 3 187.2 1 642.3 95 138.0
8 241.9 537.2 4 043.4 3 661.3 5 033.6 3 323.0 1 710.6 93 364.6
8 105.5 507.7 3 809.8 3 788.0 5 136.8 3 405.6 1 731.3 94 198.0
8 250.3 490.0 3 866.1 3 894.2 5 314.7 3 538.1 1 776.6 95 983.0
8 373.2 524.7 3 306.8 4 541.8 5 238.5 3 362.3 1 876.3 116 853.3
0.0
0.0
0.2
0.0
0.0
0.0
200.0
0.0
0.0
0.1
1 027.2
5 122.0
3 760.1
Social
security
funds
12 13 14 15 16 17 18 19 20
of which issued by: of which:
2009
264
Statistical annex
N a t i o n a l B a n k o f P o l a n d
External
assets, net
Official
reserve
assets
Refinancing
credit Rediscount
credit
Lombard
credit
Credit for
rehabilitation
programmes
Other
credit
Overdue
credit
1 2 3 4 5 6 7 8 9
177 242.8 184 165.2 3 797.8 0.0 2 317.7 0.0 1 474.0 6.0 0.0
193 708.2 204 779.9 1 474.0 0.0 0.0 0.0 1 474.0 0.0 0.0
219 364.7 227 516.4 1 474.0 0.0 0.0 0.0 1 474.0 0.0 0.0
209 118.4 216 926.6 1 380.9 0.0 0.0 0.0 1 380.9 0.0 0.0
199 311.8 210 588.6 1 380.9 0.0 0.0 0.0 1 380.9 0.0 0.0
204 588.4 216 024.0 1 380.9 0.0 0.0 0.0 1 380.9 0.0 0.0
203 030.2 212 987.6 1 287.8 0.0 0.0 0.0 1 287.8 0.0 0.0
200 479.6 211 185.7 1 287.8 0.0 0.0 0.0 1 287.8 0.0 0.0
204 127.6 217 406.4 1 287.8 0.0 0.0 0.0 1 287.8 0.0 0.0
210 731.7 225 520.6 1 194.6 0.0 0.0 0.0 1 194.6 0.0 0.0
218 293.4 239 275.9 1 194.6 0.0 0.0 0.0 1 194.6 0.0 0.0
216 343.1 234 349.2 1 194.6 0.0 0.0 0.0 1 194.6 0.0 0.0
211 764.8 226 859.2 1 101.5 0.0 0.0 0.0 1 101.5 0.0 0.0
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Period
Credit for
central
government
investment
projects
TABLE XI
Reserve money and counterparts (million zloty)
TABLE Xb
M3 and counterparts (million zloty)
M3 counterparts
loans
Deposits of central
government
Longer-term
financial liabilities
Deposits with
agreed maturity
over 2 years and
deposits
redeemable at
notice over
3 months
Households of which
individuals
Non-monetary
financial
debt institutions
securities
issued
1 034.4 146 425.6 42 420.6 136 471.5 8 895.9 4 025.3 3 978.9 3 190.1
1 091.1 141 960.2 43 714.3 137 912.8 9 356.2 4 037.5 3 999.9 3 186.0
1 045.3 150 589.7 51 438.2 139 307.0 9 543.3 4 093.8 4 047.0 3 198.5
1 071.8 157 990.9 46 961.9 141 767.3 9 376.7 4 076.3 4 037.6 3 241.1
982.2 158 054.2 53 916.8 144 621.4 9 139.8 4 055.5 4 021.6 3 188.2
1 006.2 154 514.6 47 617.6 149 709.0 9 298.0 4 068.0 4 032.3 3 176.7
1 000.4 153 984.7 42 494.4 158 539.0 9 354.7 4 073.8 4 040.2 3 242.1
799.0 153 404.0 51 842.1 159 418.1 9 397.9 4 062.2 4 029.0 3 258.3
787.2 153 271.7 65 504.0 161 151.8 9 648.2 4 024.7 3 996.8 3 303.8
777.8 150 453.1 64 604.1 162 080.3 9 070.5 4 027.6 3 999.0 3 200.9
688.2 151 430.5 66 043.9 161 211.6 9 126.4 4 009.4 3 983.7 3 275.3
758.2 151 769.5 67 176.1 164 730.3 9 172.4 4 000.8 3 975.6 3 314.7
979.5 149 623.7 48 878.1 172 008.4 8 870.0 4 002.5 3 977.8 3 207.1
XII 2008
I 2009
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
153 333.6
149 080.4
157 865.3
165 328.8
165 082.8
161 648.4
161 086.0
160 093.4
160 642.0
157 968.8
160 241.9
163 159.1
165 731.4
Period
Credit to central
government
of which:
21 22 23 24 25 26 27 28 29
2009
Annual Report 2009
Statistical annex
265
Open market
operations
(net)
Auction
credit
Auction
deposits
NBP
bills
Credit to
central
government,
net
Other items
(net)
Central Bank
reserve money
Currency in
circulation
(including
vault cash)
Bank
current
accounts
Reserve
requirements
accounts
10 11 12 13 14 15 16 17 18 19
5 039.3 15 252.6 0.0 -10 213.3 -21 282.3 -38 447.4 126 350.2 101 774.0 24 465.7 110.5
-4 257.8 13 176.0 0.0 -17 433.7 -14 392.6 -52 383.8 124 148.0 97 497.0 26 538.8 112.2
-1 300.4 12 199.6 0.0 -13 500.0 -27 264.4 -64 450.6 127 823.3 99 680.1 28 026.9 116.3
-4 428.3 12 071.7 0.0 -16 500.0 -20 399.4 -61 380.2 124 291.5 99 621.1 24 570.4 100.0
-1 603.2 14 896.8 0.0 -16 500.0 -25 257.7 -48 129.3 125 702.5 102 066.9 23 533.2 102.4
-15 859.7 11 640.3 0.0 -27 500.0 -21 648.6 -44 565.3 123 895.7 100 848.4 22 939.0 108.3
-22 030.2 11 392.7 0.0 -33 422.8 -14 763.9 -42 144.1 125 379.7 101 298.3 23 980.1 101.3
-24 728.9 10 271.1 0.0 -35 000.0 -22 392.6 -28 269.4 126 376.4 100 523.1 25 747.0 106.4
-33 590.3 7 610.6 0.0 -41 201.0 -27 184.7 -24 626.1 120 014.3 100 031.6 19 886.2 96.4
-37 746.2 7 253.8 0.0 -45 000.0 -26 702.7 -28 659.8 118 817.6 98 714.9 20 001.3 101.4
-41 063.7 13 902.3 0.0 -54 966.0 -29 610.3 -29 380.7 119 433.4 98 656.6 20 680.3 96.5
-36 312.0 11 407.6 0.0 -47 719.6 -29 799.6 -26 158.9 125 267.2 97 174.2 27 986.8 106.3
-26 455.9 14 528.5 0.0 -40 984.4 -22 632.2 -26 271.6 137 506.6 99 954.1 37 438.3 114.1
Local
government
Debt securities
issued with
maturity over
2 years
Capital and
reserves
Fixed assets
(excluding financial
fixed assets)
Other items
Social (net)
security
funds
10.6 0.1 10 495.6 117 080.0 38 859.6 -48 109.9
8.6 0.1 10 684.5 117 872.2 38 947.1 -64 343.6
8.4 0.1 10 943.1 118 820.6 39 067.4 -76 238.0
9.2 0.2 10 866.0 121 524.6 39 084.5 -74 490.7
10.2 0.9 10 551.0 124 930.6 39 221.3 -59 107.3
9.8 0.8 10 080.4 130 330.6 39 264.6 -58 668.1
10.1 0.9 9 921.3 139 262.9 39 367.8 -51 823.5
295.4 1.0 9 876.3 140 143.9 39 515.6 -40 240.6
512.4 1.0 10 462.2 141 041.4 39 624.1 -37 439.3
9.3 1.7 10 609.8 142 400.0 39 737.2 -40 393.5
9.3 2.2 12 549.4 139 535.9 39 784.8 -47 813.2
9.6 2.2 15 025.6 140 532.2 39 811.1 -48 085.9
8.5 1.6 16 775.8 146 362.6 40 043.8 -42 724.0
135.9
136.1
134.8
128.4
129.0
126.6
119.4
121.9
124.9
120.2
128.9
128.9
125.1
1 533.8
1 987.9
2 107.7
1 921.5
1 755.9
1 916.0
1 908.4
1 659.0
1 681.4
1 710.9
1 701.4
1 716.3
1 525.2
Non-profit
institutions serving
households
Non-financial
corporations
30 31 32 33 34 35 36 37
2009
266
Methodological notes
N a t i o n a l B a n k o f P o l a n d
METHODOLOGICAL NOTES
TABLE I
Basic statistical data
Information contained in Table I is derived from the “Statistical Bulletin” of the Central
Statistical Office [GUS]. Definitions of the categories presented in the Table can be found in
the GUS publications.
1. Data presented in pts. 1, 2, 6, 7, 10 and 12 comprise national economy entities regardless
of their ownership type, i.e. public sector entities (state-owned entities, units of local government
and mixed ownership, where public sector entities prevail) and private sector entities. The private
sector includes units of private domestic ownership (among others: companies, cooperatives,
natural persons conducting economic activities, social organizations, associations, foundations),
private foreign ownership (among others: foreign enterprises branches, foreign representatives,
partnerships with exclusive foreign capital share) and “mixed” ownership with a private sector
unit capital majority or lack of sectors majority in unit capital.
2. The corporate sector comprises entities, which conduct their economic activities in the
fields of: forestry, including the provision of services; marine fishing; mining, manufacturing;
electricity, water and gas production and supply; construction; wholesale and retail trade; repair of
motor vehicles, motorcycles as well as personal and household goods; hotels and restaurants;
transport, storage and communication; real estate renting and related business activities, renting
machines and equipment without an operator and of personal and household goods; computer
and related activities; other business activities; sewage and refuse disposal, sanitation management
and other sanitation services; recreational, cultural, sporting and other services.
3. According to the Polish Statistical Classification of Economic Activities [PKD], the notion
of “industry” applies to the following sections: “mining”, “manufacturing” and “electricity, gas
and water production and supply”.
4. Data on the sold production of industry (pt.1), and the construction and assembly
production (pt. 2) refer to economic entities with of more than 9 employees.
5. Data on the value of the sold production of industry (pt. 1) and the construction and
assembly production (pt. 2) are disclosed net without the due value added tax (VAT) and the excise
tax, while they include subsidies for specific purposes to products and services in the so-called base
prices.
6. Construction and assembly production data (pt. 2) refer to works performed on
commission in Poland by the business entities of the construction sector, i.e. classified under
“construction” according to the PKD.
7. Information on the sold production of industry (pt. 1) and the construction assembly
production (pt. 2) are disclosed without seasonal adjustments.
8. Data on employed persons include persons employed on a full and part-time basis in the
main place of work. Employed persons include: persons employed on the basis of a labour
contract; owners and co-owners of units engaged in economic activities including contributing
family members; outworkers; agents and persons employed by agents; members of agricultural
production co-operatives. Data presented in the Bulletin do not include private farmers or
employees of budget entities conducting activity within the scope of national defence and public
safety.
2009
Annual Report 2009
Methodological notes
9. Unemployment rate (pt. 9) is calculated as a percentage share of the unemployed in the
civilian population i.e. total of employed and unemployed persons over 15 years of age.
10. Revenues from privatisation do not constitute the current revenues of the state budget;
instead they finance the budget deficit (pt. 11).
11. Data on financial results of enterprises (pt. 12) are presented as prescribed by the
amended Accounting Act dated 29 September 1994 (uniform text Journal of Laws 2002 No 76,
item 694, with later amendments).
TABLE II
Financial market – basic information
Information comprised in Table II has been derived from the National Bank of Poland (save
for the data in pt. 6, supplied by the Warsaw Stock Exchange).
1. Interest rates in Table II are presented on an annual basis at the level which was binding
on the last day of a given month. The average monthly interest rate has been given only for the
weighted average yield on purchased T-bills or the NBP money-market bills.
2. Interest rate (pt. 1 col. 3) refers to refinanced loan which are not a lombard loan.
3. Deposit rate (pt. 1 col. 4) sets the price offered by the Central Bank to commercial banks
for short-term deposits.
4. Total reserve requirements (pt. 2 col. 12) pertain to the volumes declared by banks and
binding on the last day of the month. Since 28 February 2002, the total reserve requirements are
held exclusively on the NBP accounts.
5. Information on Treasury bill tenders (pt. 3, except for the stocks of bills in circulation at
the end of the month – col. 76) comprises data from tenders conducted within one month. The
average yield on bills purchased is weighted by the share of the sales of bills with different
maturities in the total value of bills purchased. The stock of bills in circulation at month end has
been determined on the basis of the agreed maturity, calculated from the day after the tender
which resulted in the sale of the bill. The above stock does not include bills in circulation which do
not stem from tenders.
6. Information on tenders for the NBP money-market bills (pt. 4, except for the stock of bills
in circulation at month end – col. 122 comprises data from tenders conducted within one moth.
The average yield on bills purchased is weighted by the share of the sales of bills with different
maturities in the total value of bills purchased.
7. The indices presentation on the main stock market of the Warsaw Stock Exchange (WSE)
is composed of the following set of indices:
• WIG20 index has been calculated since 16 April 1994 based on the value of portfolio
with shares in 20 major and most liquid companies in the main stock market. The initial
value of WIG20 index was 1000 points. It is an price index and thus when it is
calculated it accounts only for prices of underlying shares whereas dividend income is
excluded. The WIG20 index may not include more than 5 companies from a single
exchange sector.
• mWIG40 index is successor of MIDWIG index and has been calculated since
31 December 1997 and comprises 40 medium size companies listed at WSE. The initial
value of index was 1000 points. mWIG40 is an price index and thus when it is
calculated it accounts only for prices of underlying shares whereas dividend income is
267
2009
268
Methodological notes
N a t i o n a l B a n k o f P o l a n d
excluded. The mWIG40 index excludes WIG20 and sWIG80 index participants and
foreign companies listed at WSE and other markets with the market capitalization at
the ranking date above EUR 1 billion.
• sWIG80 index is successor of WIRR index that has been calculated since 31 December
1994 and comprised 1% of smaller companies listed at WSE. The initial value of index
was 1000 points. sWIG80 is an price index and thus when it is calculated it accounts
only for prices of underlying shares whereas dividend income is excluded. The sWIG80
index excludes WIG20 and mWIG40 index participants and foreign companies listed at
WSE and other markets with the market capitalization at the ranking date above
EUR 100 million.
8. The indices comprise companies from all the quotation markets.
9. Capitalization refers only to domestic companies.
10. The P/E ratio shows the relation of the market price to net earnings and is calculated as
a quotient of the total market value of companies at month end to their aggregated profits and
losses generated within the last 4 quarters, for which financial data are available.
11. The turnover ratio shows the relation between the value of sold shares to the average
value of shares quoted in a given month.
12. The monthly turnover value and the turnover ratio comprise the continuous quotation
and fixing.
TABLE III
PLN/USD and PLN/EUR daily exchange rates
The information has been based on the data of the National Bank of Poland.
1. The NBP average exchange rate is the official exchange rate used for statistical and
accounting purposes.
2. The average PLN/USD and PLN/EUR exchange rates and the USD/EUR ratio were
calculated as the arithmetic average of the NBP average exchange rates for a month (based
on daily exchange rates).
SECTORAL CLASSIFICATION
• Financial sector comprises the following sub-sectors:
– monetary financial institutions73 (including the central bank and other monetary
financial institutions). In Poland, the concept of other monetary financial institutions
applies to banks, credit unions (SKOK) and money market funds;
– insurance corporations and pension funds;
– other financial intermediaries (including financial leasing companies, factoring
companies, brokerage offices, investment funds, without money market funds, and
financial companies created for securitization);
73 In accordance with the ECB definition, monetary financial institutions (MFIs) comprise financial institutions whose
business is to receive deposits and/or close substitutes for deposits from entities other than MFIs and, for their own
account, to grant credits and/or to make investments in securities.
2009
Annual Report 2009
Methodological notes
– financial auxiliaries (including bureaus de change, bourses, hire purchase institutions).
• Non-financial sector comprises the following sub-sectors:
– state-owned corporations;
– private corporations and co-operatives;
– individual entrepreneurs;74
– farmers;
– individuals;
– non-profit institutions serving households.
In the publications of the National Bank of Poland, claims and liabilities of banks to the non-
-financial sector will be presented in accordance with the EU standards, i.e. sub-divided into three
sectors:
• households – comprising:
– individuals;
– farmers;
– individual entrepreneurs;
• non-financial corporations – comprising:
– state-owned corporations;
– private corporations and co-operatives (including: individual entrepreneurs with more
than 9 employees);
• non-profit institutions serving households (separate legal entities, which serve
households. Their principal resources, apart from those derived from occasional sales, are
derived from voluntary contributions in cash or in kind from households, from payments
made by general governments and from property income).
• General government comprises the following sub-sectors:
– central government (including public governing bodies, government administration
bodies, state control and law protection bodies, courts and tribunals, state universities,
state institutions of culture and welfare etc.);
– local government (including local administrative offices [at gmina and poviat level],
local parliaments, public elementary schools, institutions of culture financed by local
governments, welfare institutions, etc.);
– social security funds (comprise the Social Insurance Institution and the Agricultural
Social Insurance Fund and the funds they manage, and the healthcare funds).
269
74 Natural persons conducting business activities on their own account, with a maximum of 9 employees.
2009
270
Methodological notes
N a t i o n a l B a n k o f P o l a n d
TABLE IV
Average interest rate on zloty denominated businesses
Data on zloty denominated businesses refer to all businesses at the end of the reporting
month, these concluded prior to the reporting month and still binding as well as new businesses.
This interest rate is a quotient of interest on average zloty denominated business by average
volume of businesses per reporting month, commissions and other charges excluded.
The interest rate is calculated based on data received from the following banks (20):
1. Powszechna Kasa Oszcz´dnoEci Bank Polski SA
2. Bank Polska Kasa Opieki SA
3. Bank BPH SA
4. Bank Handlowy w Warszawie SA
5. ING Bank Alaski SA
6. Kredyt Bank SA
7. Bank Zachodni WBK SA
8. BRE Bank SA
9. Bank Millennium SA
10. Bank Gospodarki ˚ywnoEciowej SA
11. Raiffeisen Bank Polska SA
12. BRE Bank Hipoteczny SA
13. Krakowski Bank Społdzielczy
14. Bank Społdzielczy w Brodnicy
15. Bank Gospodarstwa Krajowego
16. Bank Ochrony Arodowiska SA
17. FORTIS BANK POLSKA SA
18. GE Money Bank SA
19. LUKAS Bank SA
20. AIG Bank Polska SA.
At the end-December 2008, the above banks held 78.7% of deposits of residents and
73.7% of credit to households and non-financial corporations.
2009
Annual Report 2009
Methodological notes
TABLE V
Average interest on new zloty denominated businesses
Information refers to agreements carried out in a given reporting month. Appendices to
existing agreements shall be deemed new businesses.
Interest rates in the statistics on new businesses differ from those in Table IV. The formula is
applied to statistical information on new businesses, also known as Narrowly Defined Effective
Rate (NDER). The concept of Narrowly Defined Effective Rate was coined as an opposite to widely
understood effective interest rate or Real Interest Rate (RIR). The NDER included, the new business
statistics provides RIR for the second category of consumer and house purchase loans. As opposed
to the NDER, which covers for interest costs of capital the real interest rate incorporates all charges
paid by the borrower. These charges are most of all commissions (brokers included) but also
compulsory loan insurance premiums against death or unemployment of the borrower.
The Table IV sample of banks applies.
Table VI
Average interest rate on euro denominated businesses
General rule of calculating interest rate are the same as for Table IV (see star-matched lines)
and Table V. The Table IV and V sample of banks applies as well.
GENERAL COMMENTS ON TABLES VII, VIII, IX
1. The figures refer to the end of each reporting month and have been derived from balance
sheets received from the banks within the framework of the “Banking Reporting Information
system (BIS)” and from the balance sheet of the National Bank of Poland and credit unions (SKOK)
and money market funds.
2. The presentation is structured in accordance with the ECB standards.
3. Assets in Tables VII, VIII and IX are shown gross of provisions, accumulated depreciation
and write downs (except for securities presented at a market price).
4. Apart from external assets/liabilities debt securities issued and partly capital and reserves,
all categories reflect operations with residents.
TABLE VII
Aggregated balance sheet of other monetary financial institutions – assets and
liabilities
1. Credits, loans and other claims to domestic residents (assets col. 1) include current
accounts, reserve requirements, open market operations, deposits, loans and credits, debt
purchased, realised guarantees and sureties, other claims, interest due and claims on securities
purchased under repurchase agreements.
2. Debt securities issued by domestic residents (assets col. 5) held by other monetary
financial institutions.
3. Money Market Funds participation units purchased by other MFIs (assets col. 9).
271
2009
272
Methodological notes
N a t i o n a l B a n k o f P o l a n d
4. Securities and other shares and other equity issued by domestic residents (assets col. 10)
include shares, investment fund participation units, investment certificates and fixed financial
assets (shares).
5. External assets (assets col. 13) include all assets of non-residents denominated in zloty and
foreign currencies.
6. Fixed assets (assets col. 14) include total fixed assets except for financial fixed assets.
7. Other assets (assets col. 15) include vault cash i.e. cash and other cash equivalents held
at other monetary financial institutions, as well as other claims and interest due and not due from
all sectors, settlement accounts, claims on various debtors, deferred income and expenditure,
other financial assets, value adjustments, rights issue, other assets, other operations, interest on
securities purchased under repurchase agreement.
8. Deposits and other liabilities to domestic residents (liabilities col. 1) represent overnight
deposits, deposits with agreed maturities, blocked deposits, deposits redeemable at notice,
received credit and loans, including refinancing, auction (open market operations) and claims from
cash collateral (classified to “with agreed maturities”), other liabilities and claims on repurchase
agreements, subordinated claims save for those in securities issued.
9. Money Market Funds participation units issued by the MMF (liabilities col. 9).
10. Debt securities issued (liabilities col. 10) are liabilities on own debt securities issued by
other monetary financial institutions and subordinated claims in securities issued (purchased by
residents and non-residents).
11. Capital and reserves (liabilities col. 11) are divided into: a) core fund comprising share
paid-in capital, called-up capital unpaid, own shares, accumulated reserves, general risk
provisions, reserve capital and retained earnings, b) supplementary funds i.e. revaluation reserves
and other supplementary funds specified in the Banking Law (assigned both to residents and non-
-residents) other components of equity capital, c) provisions, including specific provisions,
impairment allowances, mortgage notes reserves (resident, non-resident), specific provisions for
off-balance liabilities (resident, non-resident), general risk provisions (resident, non-resident).
12. External liabilities (liabilities col. 15) include all liabilities of non-residents denominated in
zloty and foreign currencies, except for reserves included in pt. 11, which comprise residents and
non-residents as well as issue of debt securities and subordinated claims in securities purchased by
non-residents.
13. Other liabilities (liabilities col. 16) include interest on the above-mentioned liabilities,
settlement accounts, liabilities to creditors, deferred income and expenditure, suspended revenue,
other liabilities from financial instruments, other liabilities, exchange rate fluctuations resulting
from the conversion of subordinated liabilities, reserves for risk and expenditures not associated
with the basic activities of the reporting bank, subordinated liabilities, other operations, interest on
subordinated liabilities, value adjustments profit/loss during approval procedures, current year
profit/loss.
TABLE VIII
Balance sheet of the National Bank of Poland – assets and liabilities
1. The item credits, loans and other claims to domestic residents (assets col. 1) comprises
receivables from granted loans, including rediscount, lombard, refinancing for central investments,
loans granted from foreign credit facilities, open market operations, other loans and receivables
from current and fixed term deposits.
2009
Annual Report 2009
Methodological notes
2. Debt securities issued by domestic residents (assets col. 5) are securities held by the
National Bank of Poland.
3. Securities and other shares and other equity issued by domestic residents (assets col. 8)
– at the moment in the case of the NBP they include only fixed financial assets (equity).
4. External assets (assets col. 11) include all assets of non-residents denominated in zloty and
foreign currencies.
5. Fixed assets (assets col. 12) include total fixed assets except for financial fixed assets.
6. Other assets (assets col. 13) include interest due and not due on the above-listed
operations, deferred costs, inter-branch settlements and other assets excluding fixed assets.
7. Deposits of domestic residents (liabilities col. 2) represent liabilities on overnight deposits,
deposits with agreed maturity, reserve requirements, auction deposits (open market operations),
separated funds and other deposits.
8. Debt securities issued (liabilities col. 6) represent liabilities on the NBP debt securities
issued by the NBP.
9. Capital and reserves (liabilities col. 7) in the case of the NBP it comprises equity i.e.
authorised capital, as well as reserve fund and provisions, which include specific provisions,
accumulated depreciation and valuation allowances.
10. External liabilities (liabilities col. 10) include all liabilities of non-residents denominated in
zloty and foreign currencies.
11. Other liabilities (liabilities col. 11) include interest on the above-mentioned categories of
liabilities, deferred income, inter and intra-MFI settlements, other liabilities and financial
performance.
TABLE IX
Consolidated balance sheet of monetary financial institutions – assets and liabilities
1. Table IX comprises a consolidated balance sheet of monetary financial institutions.
2. In the assets and liabilities of the above-mentioned balance sheet, domestic inter-MFI
operations have been netted out.
3. Other assets (assets col. 10) and currency in circulation (liabilities col. 1) were decreased
by cash in vaults of other monetary financial institutions.
273
2009
274
List of the most important abbreviations
N a t i o n a l B a n k o f P o l a n d
LIST OF THE MOST IMPORTANT ABBREVIATIONS
BFG Bank Guarantee Fund
BGK National Economy Bank
(Bank Gospodarstwa Krajowego)
BHK SA Bank Handlowo-Kredytowy SA
BIS Bank for International Settlements
BoE Bank of England
bp basis point
EBRD European Bank for Reconstruction and Development
ECB European Central Bank
EIB European Investment Bank
EMU Economic and Monetary Union
ERM II Exchange Rate Mechanism II
ESCB European System of Central Banks
EU European Union
FED Federal Reserve Bank
GDP Gross Domestic Product
GINB General Inspectorate of Banking Supervision
(Generalny Inspektorat Nadzoru Bankowego)
GUS Central Statistical Office
(Głowny Urzad Statystyczny)
IMF International Monetary Fund
KDPW SA National Depository for Securities SA
(Krajowy Depozyt Papierow WartoEciowych SA)
KIR SA National Clearing House SA
(Krajowa Izba Rozliczeniowa)
KNF Polish Financial Supervision Authority
(Komisja Nadzoru Finansowego)
KRI Key Risk Indicators
KSF Financial Stability Committee
(Komitet StabilnoEci Finansowej)
MF Ministry of Finance
MPC Monetary Policy Council
NB Norges Bank
NBP National Bank of Poland
2009
Annual Report 2009
List of the most important abbreviations
275
OECD Organisation for Economic Co-operation and Development
ZBP Polish Bank Association
(Zwiazek Bankow Polskich)
pp percentage point
RBA Reserve Bank of Australia
RMS Risk Management System
SDR Special Drawing Rights
SEPA Single Euro Payment Area
SGW Internal Operations System
(System Gospodarki Własnej)
SIS Reporting Information System
(System Informacji Sprawozdawczej)
SLA Service Level Agreement
SORBNET Real-Time Gross Settlement System [RTGS] at the NBP Head Office
SORBNET-EURO Real-Time Gross Settlement System [RTGS] in Euro at the NBP Head
Office
STEP2 SCT STEP2 SEPA Credit Transfer System
TARGET, TARGET2 Trans-European Automated Real-Time Gross Settlement Express
Transfer System
ZSK Integrated Accounting System
(Zintegrowany System Ksi´gowy)
Compiled on the basis of NBP materials
Published by
National Bank of Poland
Education and Publishing
Department
00-919 Warszawa, ul. Awi´tokrzyska 11/21
phone 48 22 653 23 35, fax 48 22 653 13 21
http://www.nbp.pl
Design, pre-print & proofing
Oliwka s.c.
Photo of the President of the NBP
Agnieszka Deluga-Góra
Cover photo
NBP
Printing
Printshop NBP
ISSN 1427-0277
ⓒ Copyright by National Bank of Poland, 2010
2009
276 N a t i o n a l B a n k o f P o l a n d